Colombo, Sri Lanka, June 4, 2009
—IFC, a member of the World Bank Group, will help the Commercial Bank of Ceylon evaluate and finance renewable energy projects in Sri Lanka in an initiative that promises to yield environmental and economic rewards.
IFC is extending a $15 million equivalent risk-sharing facility to Commercial Bank to support Sri Lanka’s power-generation capacity while addressing climate change. The initiative is part of IFC’s strategy to help the private sector mitigate climate change impacts while continuing to meet significant infrastructure gaps in the South Asia region. The project is expected to produce economic benefits for local project developers, including small and medium enterprises.
IFC will share its financing, project-structuring capability, and benchmark data for renewable energy technologies new with Sri Lanka. IFC also will help enhance the bank’s ability to appraise projects using these technologies. An advisory component funded by governments of Ireland and Japan and the Global Environmental Facility, will help the bank build the capacity and skills needed to implement the program.
“We are proud to be the first to partner with IFC in an initiative that uses a risk-sharing facility and a portfolio approach for financial institutions such as ours to enhance the effectiveness of renewable energy projects,” said Amitha Goonaratne, Managing Director, Commercial Bank of Ceylon.
The project follows a unique “distributed generation” approach, with smaller scale production of electricity at or near energy demand improving reliability of supply and lowering pollution by using renewable sources.
Paolo M. Martelli, IFC Director for South Asia, said, “The initiative will support the Sri Lankan government’s mission to increase private participation in wind, hydro, and biomass projects. With most of the country’s power generation reliant on fossil fuels, this project will help the country diversify its energy infrastructure.”
About IFC
IFC, a member of the World Bank Group creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, please visit
www.ifc.org
.
About Commercial Bank of Ceylon
Incorporated in 1969, the Commercial Bank of Ceylon PLC today has 171 branches and service outlets throughout Sri Lanka. The bank’s traditional focus has been corporate banking, with a strong franchise in trade finance. With the rapid expansion of its branch network, which commenced in the mid-1990s, the exposure to the retail and small and medium enterprise sectors has grown significantly. Commercial Bank also operates eight branches and offshore-banking centers in Bangladesh. For more information, visit
http://www.combank.net
.
