Supportive policies and enabling Mobilizes commercial Needs local banks Are there any WB China ESCO 10. Leveraging environment financing which can and ESCOs to private ESCOs in program commercial financing deliver scale and be provide reasonable the market? Introduction of simpler business Czech Republic using private sustainable, cost financing and models Are private Germany assume credit risk Helps address ESCOs and/or ESCOs/performance Appropriate financing schemes Hungary overcollateralization/short Serves only very municipalities Early market development through contracts India tenor issues creditworthy public creditworthy for public sector projects Japan agencies commercial ESPC may not count Development of public-private South Korea project financing? against public debt, ESCO industry is partnership (PPP) models to kick-start U.S. public agency shifts difficult to develop market Canada technical risks to Public procurement party issues difficult to address Source: Adapted by authors from World Bank 2013b
10. Leveraging commercial financing using private ESCOs/performance contracts Supportive policies and enabling environment Introduction of simpler business models Appropriate financing schemes Early market development through public sector projects Development of public-private partnership (PPP) models to kick-start market Mobilizes commercial financing which can deliver scale and be sustainable, Helps address overcollateralization/short tenor issues ESPC may not count against public debt, public agency shifts technical risks to party Needs local banks and ESCOs to provide reasonable cost financing and assume credit risk Serves only very creditworthy public agencies ESCO industry is difficult to develop Public procurement issues difficult to address Are there any private ESCOs in the market? Are private ESCOs and/or municipalities creditworthy for commercial project financing? WB China ESCO program Czech Republic Germany Hungary India Japan South Korea U.S. Canada Source: Adapted by authors from World Bank 2013b
108848-ESM-P157135-PUBLIC-EE-Options-Paper-Kosovo-ENGLISH.docx