Egypt

EE/RE finance training for local financial institutions

EXPERTISE : /Training, Financing Mechanisms
SECTOR : , Commercial

client

UNIDO United Nations Industrial Development Organization

project description

The UNIDO’s energy program in Egypt currently consists of two ongoing projects, namely: the Industrial Energy Efficiency (IEE) project and the Utilizing Solar Energy for Industrial Process Heat in Egyptian Industry (SHIP).

The objective of the IEE project is to facilitate energy-efficiency improvements in the industrial sector, whereas the goal of the SHIP project is to develop the market environment for disseminating solar energy technologies and promoting local production of solar energy to meet the needs for industrial process heat.

The lack of capacity among local financial institutions to evaluate requests for financing of RE and EE projects stands out as a major barrier to sustainable energy investments in Egypt. To address this barrier, financial institutions need new skills and an improved level of knowhow related to the technical and financial aspects of those projects in order to be able to market, study, analyze and approve their financing. UNIDO therefore plans to provide the local banks and national financing institutions with support for building their capacity for financing energy projects.

faits saillants

Econoler was contracted to develop, coordinate and deliver (1) a capacity-building program for Egyptian banks on sustainable energy financing and (2) a “train the trainer” module for local experts. More specifically, the training program consisted six sets of activities and Econoler delivered the following services:
  • Developing a training methodology (combining theoretical and practical training methods) for trainees of different backgrounds, including senior managers, middle managers, and operational-level loan officers and risk managers.
  • Developing training materials for the training modules, covering at least the following topics:
  • Introduction to RE and EE: terms and definitions;
  • EE/RE calculations, efficiency and losses, system efficiency;
  • Developing an EE/RE project: energy audits and reviews;
  • Analyzing project benefits, and environmental and social aspects;
  • Cash flow projections and analysis.
  • Delivering the training courses to groups of trainees with various backgrounds in the following way:
  • One half-day training session for senior bank managers, covering the following:
  • Recent developments in the energy sector in Egypt and their impacts on the business and lending environment;
  • Strategic opportunities that clean energy financing opens up for the banks.
  • Three one-day training sessions for middle managers and operational bank staff, covering the following:
  • Deal generation and identification of EE/RE project opportunities
  • Direct marketing of EE/RE lending products to clients;
  • Identification, assessment and management of EE/RE risks;
  • EE/RE project financial analysis and technical evaluation.
  • Developing and delivering a training session to train trainers and providing continuous coaching support over a period of 6 – 12 months.
  • Organizing a study tour involving 15 representatives of the Egyptian banking and governmental sectors to learn from the experience of three countries which have been successful in financing EE and RE projects.
  • Developing an action plan for the coming 3‑5 years in order to ensure the sustainability of the delivered training activities.
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