|Beneficiary Contribution||Own Contribution||€ 1,500,000|
|Total Grants||€ 2,100,000|
|Total Loans||€ 15,000,000|
Inefficient use of energy is a major concern in Serbia. Comparing the consumption of primary energy between Serbia and the European Union shows how poor their position is: their energy use per dollar of GDP is two to three times greater. Three main areas of energy use are of particular concern: industrial, residential and public service facilities sector.
The government has embarked on a programme to improve the poor situation and WBIF are assisting with grant support for technical assistance. A proposed energy efficiency programme in public buildings will focus on selected public service buildings with an emphasis on schools. A key objective of the programme is that it acts as an example of best practice: it should demonstrate to municipal and government officials together with local communities the benefits of investment in energy efficiency measures. The programme is expected to contribute to at least a 20% reduction in energy consumption, providing economic and environmental benefits as well as having a positive social impact through an improved learning and working environment for pupils and teachers. The programme will be implemented in two phases and involve between 25 and 35 schools. The general approach is to concentrate on a relatively low number of schools and renovate them comprehensively - windows, roof and wall insulation, heaters and boiler - rather than partially renovating a lot of schools; the emphasis is to use the superior buildings as examples for others to follow. The programme builds on the experiences of the Serbia Energy Efficiency Project (SEEP) co-financed by the World Bank.
The project is a collaborative initiative involving central and local administrations. The Ministry of Education, Science and Technological Development (MoES) is in charge of the overall coordination and execution of the programme. The Ministry of Mining and Energy (MoME), as the line ministry for energy efficiency, has been closely involved in the project preparation.
The total value of the programme is estimated to be €18 million, to be financed through a €15 million loan from KfW, a contribution from the beneficiary municipalities and a WBIF grant of €1.3 million for technical assistance. The WBIF support includes the elaboration of energy audits, detailed designs of the renovation works in the schools, development of tender documentation, construction supervision, and targeted capacity building and implementation support. Additionally, the grant will be used to finance two local experts working in the project implementation unit of the MoES.