Public Investment Development Agency (VIPA) is currently developing a repayable assistance model for financing renovation of central government buildings and water supply and wastewater. In general repayable assistance should be applied where the market fails – where the interest of private investors in renovation is low.
The model is based on the idea that after implementing a project a beneficiary, in a fixed period of time, shall repay the funds in size of annual energy savings. Accordingly, the amount of funds to be repaid directly depends on project results. This form of financing should help to move one step further from traditional form of intervention – grant financing to some more innovative solutions providing support to renovation of public buildings. VIPA has been selected as the implementing agency for administering measures of energy efficiency financed via repayable assistance.