The European Investment Bank (EIB) is providing 22.47 million euros to finance phase 2 of the refurbishment program for multi-family housing in Bucharest, District 1, reads a press release from the financial institution. After the buildings are refurbished, the heating savings are expected to be around 50%. This is the first tranche of an approved EIB loan for a total amount of 136.5 million euros.

On this topic, EIB President Werner Hoyer said: “EIB funds will contribute to the implementation of the National Energy Efficiency Action Plan of Romania through the thermal rehabilitation of multi-story buildings. At the same time, the EIB loan will help Romania to meet its commitments under the EU Directive on the energy performance of buildings. This will improve the environment in terms of reduced emissions and pollution, with positive implications for the living standards of the citizens of Bucharest.”

The loan tranche signed by Mihai Tănăsescu, EIB Vice-President, and Andrei Chiliman, Mayor of Bucharest District 1, will enable the local Municipality to continue the project which received financing for the first phase in 2011 from EIB. It is believed that the energy savings of this program could amount to 190 GWh per year once fully implemented, in 2017. Just in this second phase, a total of 19.000 apartments will benefit from energy efficiency measures and solutions.

The estimated project cost is 182 million euros. In order to support this important energy-efficiency project in Bucharest, the EU Bank’s contribution has been raised to 75% of the project cost, in line with guidelines for investments aimed at reducing energy consumption and mitigating climate change. The Municipality’s own resources are expected to cover the remaining 25% of the cost.

To date, the EU Bank has provided 282 million euros in financing for projects with a total cost of 423 million euros, aimed at the energy efficiency refurbishment of multi-apartment buildings in Bucharest’s Districts 1, 2, 4 and 6.