Moscow Russia, June 22, 2012
—IFC, a member of the World Bank Group, signed a cooperation agreement with the Association of Regional Banks of Russia to help regional commercial banks develop new products and know-how to expand financing for capital repairs, energy-efficient renovations, and modernization of multifamily buildings.
The IFC Russia residential Energy Efficiency Project will advise the association, known as ASROS, on developing financing schemes for homeowner associations, housing-management companies, and energy-servicing companies that will support renovation of multifamily buildings. The IFC project will also help ASROS develop training curricula, conduct workshops, and disseminate best practices among member banks.
“Developing best practices in residential energy-efficiency finance opens new business opportunities for regional banks,” said Anatoly Aksakov, ASROS’s President and member of State Duma, Russia’s parliament. “Interest among our member banks is always high in participating in such programs because they trust IFC and value its international expertise. I am confident of this program’s success.”
Russia’s residential-housing sector consumes 20 percent of the country’s electricity and 60 percent of its heat. About 60 percent of Russia’s multifamily apartment buildings need repairs, including 96 percent of apartment buildings older than 25 years. The estimated cost for capital repairs in Russia up to year 2035 range from 322 billion to 1,715 billion Russian rubles (about $10 billion to $53 billion).
Rolf Behrndt, IFC Regional Business Line Manager for Access to Finance in Europe and Central Asia, said, “The need for capital repairs in Russia is enormous, and local commercial banks can play a vital role in providing financing for capital repairs and energy-efficiency modernization of multifamily buildings. IFC can help banks strengthen expertise in this area. Together with ASROS, we also can provide advice to the federal government and State Duma on legislative improvements.”
The IFC Russia Residential Energy Efficiency Project aims to stimulate investment in the energy-efficient renovation of residential multifamily buildings and to reduce carbon dioxide emissions. The program is being implemented with financial support from Finland’s Ministry of Foreign Affairs and Ministry of Employment and Economy and the Global Environment Facility, and in partnership with European Bank for Reconstruction and Development.
For more information about the Association of Regional Banks of Russia, please visit
http://www.asros.ru/
.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit
www.ifc.org
.
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