FMFC finances energy efficiency projects in remote regions

FMFC finances energy efficiency projects in remote regions

The First MFC is the only non-bank partner of the Kyrgyzstan Sustainable Energy Finance Facility (KyrSEFF). KyrSEFF is a financing program developed by the European Bank for Reconstruction and Development. KyrSEFF loans are supported by grants incentives of up to 35% as well as technical assistance, provided by the EU-IFCA fund. Through the provision of loans for improving the energy efficiency of private households and residential buildings, the FMFC contributes to the development of a green economy in private housing and each year receives a number of awards for achievements in energy and water efficiency.

By the end of November 2020, despite the pandemic, the FMFC issued a record number of loans through KyrSEFF with a grant component from the European Union. From August to November 2020 alone, the company’s Naryn branch delivered 40 certificates to clients for the successful implementation of energy-saving projects in Naryn city and Naryn region.

“Our branch provides services to the people of Naryn city and villages of Naryn region. Over 2 years of cooperation with the KyrSEFF program, we have financed 342 projects for a total amount of over KGS 41 million. Our loan product is called “Dream House” and I am very glad that we help our clients to make their dream home come true, because in the local cold climate it is very important. Most clients apply for loan support again: first, they insulate the walls, they see the result of energy-efficient measures, then thermal insulation of the ceiling and floor, replace old wooden windows with new energy-efficient ones,” says Dinara Sarbaeva, Director of the Naryn branch of the First MFC.

It is well known that Naryn region of Kyrgyzstan is distinguished by severe climatic conditions. In winter, the air temperature drops to - 40 degrees. Unfortunately, for a lot of people in Naryn the cold houses with all the ensuing consequences (frequent colds, necessity in additional heaters, respectively, additional costs) have become commonplace. However, in recent years, there has been a trend towards the use of energy efficient technologies: people have begun to invest in improving the quality of life through improving living conditions.

Success story of Burulkan Kasymaliyeva from Kulanak village, Naryn region:
“We applied for a “Dream House” loan three times, because we decided to build a new house thoroughly, and this requires large expenses. It was important for me that our entire family, both adults and children, grandchildren, lived in a cozy, warm house. After the very first consulting, the FMFC employees organized a meeting for us with a KyrSEFF officer in Naryn, and we decided to build a house taking into account energy efficiency. To be honest, we were very happy to receive the grant for each implemented project. As a result, firstly we installed five chamber windows, then we insulated the walls and ceiling, and completed the project by installing a high efficiency boiler. We became aware of the difference this winter: all the rooms are very warm and this is the happiness indeed. It turned out that building a high-quality energy-saving house and really enjoying our lives is easy: it is necessary to get advice from KyrSEFF consultants, choose materials, make an estimate and apply for financial support,” says Burulkan Kasymalieva.

According to Aibek Askarbekov, a consultant engineer at KyrSEFF in the Naryn region, energy-saving projects implemented by Burulkan Kasymaliyeva resulted in annual savings of 39,158 kWh and a decrease in harmful emissions into the atmosphere in the amount of 29,229 kg. The total amount of funds used was KGS 450,000, the amount of remuneration for the project purposefulness and effectiveness from the funds of the European Union was USD 1,283.12.

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