Technical Assistance for the Implementation of the SUNREF Palestine Project

SUNREF (Sustainable Use of Natural Resources and Energy Finance) is a green finance product developed by the AFD, whose objective is to mobilize the financial sector of partner countries toward renewable energy (RE) and energy efficiency (EE) investments and investments to increase overall environmental performance. In cooperation with the European Union, AFD is providing a SUNREF credit line combined with a grant to two local partner banks in Palestine – Bank of Palestine (BoP) and Cairo Amman Bank (CAB). The total funds of the SUNREF Palestine program amount to EUR 33 million. A SUNREF Palestine project implementation unit (PIU) will be established at the Palestinian Energy and Environment Research Centre (PEC), vested at the Palestinian Energy and Natural Resource Authority. Econoler was contracted to serve as technical assistance provider to support the PIU in the overall management and supervision of the SUNREF Palestine program.

Econoler carried out the following tasks under the mandate: 

• Supported the two local banks in developing SUNREF-specific lending products for SMEs as well as corporate and retail clients;

• Developed and implemented the SUNREF Palestine communication and marketing strategy and supported the local partner banks in integrating it into their general marketing strategies;

• Supported the banks in identifying and communicating with potentially eligible borrowers;

• Organized awareness-raising events and marketing campaigns throughout Palestine to promote the SUNREF program among the general population and local businesses (including organizing the official SUNREF Palestine launch and closing events);

• Delivered EE/RE finance training workshops to the local partner banks to develop financial expertise among their credit officers, financial analysts, and risk managers;

• Supported potentially eligible borrowers in identifying viable EE/RE measures and designing technically and financially viable project proposals;

• Developed an operations manual for the implementation of SUNREF Palestine, including project application templates, data-collection forms, technical project approval and completion report templates, a list of eligible measures and equipment (LEME), etc.;

• Supported the local partner banks in designing and adopting sustainable environmental and social policies and establishing dedicated units or teams to environmentally and socially screen subprojects submitted by borrowers to ensure that projects are eligible for the credit line facility;

• Developed sufficient administration capacity at the PEC to allow it to evolve into the PIU for all international EE/RE support programs in Palestine and eventually into a full-fledged Palestinian Energy Efficiency Agency;

• Developed sufficient technical (monitoring and evaluation) capacity at PEC to allow it to manage and supervise future EE/RE funding programs in Palestine;

• Developed a methodology for technical assessments of more complex EE/RE projects under the SUNREF Palestine credit line;

• Conducted technical assessments for projects exceeding EUR 200,000 in overall investment value and prepared project approval reports for the AFD and partner banks;

• Developed monitoring and verification plans and reports for projects financed by SUNREF Palestine;

• Provided support to the verification agent, AFD, and partner banks for the disbursement of financial incentives to final beneficiaries;

• Managed and supervised the disbursement of funds from the dedicated SUNREF Palestine feasibility study fund;

• Developed, maintained, and frequently updated the SUNREF Palestine website.

Overall, Econoler facilitated the successful promotion and disbursement of the SUNREF Palestine credit line by supporting the local partner banks. Palestinian bankers were also trained to identify and assess potentially feasible sustainable energy investment projects. Moreover, Econoler experts developed and enhanced the implementation of a viable communications and marketing strategy not only to popularize the SUNREF program, but also to disseminated the merits of EE/RE investments as a whole. The total fund was disbursed successfully, and Econoler worked with the AFD to launch Phase 2 to provide additional funding of EUR 25 million to both partner banks.