Support to make Baltic Sea projects bankable
Organisation: Nordic Investment Bank
Time: 2/1/2010 – 1/1/2015
NIB and NEFCO are committed to supporting the implementation of the BSAP by giving high priority to project identification, development and implementation. For the implementation NIB’s EUR 500 million loan facility for the BSAP and NEFCO’s risk capital and other programs are instrumental. NEFCO’s mandate relating to investments in the Baltic states has thus been extended until 2013 for BSAP related investments.
NIB’s and NEFCO’s joint call for the creation of a project preparation vehicle, the BSAP Fund/ Fund, for speedy implementation of the BSAP has been favourably responded to by Finland and Sweden. Further countries are expected to join the Fund which now amounts to EUR 5.6 million. The BSAP Fund’s first project will be presented for approval in the first quarter of 2010.
Based on this NIB and NEFCO give commitment to actively support interested parties to make Baltic Sea projects bankable.
Recipients eligible for financing through the BSAP Fund include both public and private entities operating i.a. in the agricultural and wastewater treatment sectors, as well as those working to reduce Hazardous substances and litter going to the Baltic Sea. A key purpose of the Fund is to facilitate and speed up the preparation and implementation of bankable projects.
The BSAP Fund provides grant financing for the following:
* expenditures for project preparation and development, including feasibility studies, development of business ideas, and cash-flow models;
* technical assistance for institutional support, that is, training and support needed for project preparation, development and implementation;
* improving efficiency and quality in project implementation through, for example, supporting the acquisition of equipment for demonstration purposes.
The aim of the fund’s activities is also to enhance the opportunities for projects to obtain investment financing from international financial institutions, including NIB and NEFCO.
Objective of the Commitment:
Enhance and speed up the implementation of the BSAP through development and implementation of concrete, cost efficient investments leading to long term or permanent reduction of pollution going to the Baltic Sea.