CABEI and BANDESAL sign non-reimbursable technical cooperation agreement
San Salvador, November 20, 2015. - The Central American Bank for Economic Integration (CABEI), through its Green MSME Initiative, signed a non-reimbursable technical cooperation agreement with Banco de Desarrollo de El Salvador (BANDESAL) with the objective of promoting financing for private investment projects involving Energy Efficiency and Renewable Energy.
The credit agreement was signed by BANDESAL President Ms. Melida Mancía and CABEI Director for El Salvador Mr. Guillermo Funes.
The agreement is being carried out through the Green MSME Initiative, which is executed by CABEI with financial support from the German government’s KfW Development Bank and the European Union’s Latin America Investment Facility (LAIF).
The Green MSME Initiative involves using reimbursable and non-reimbursable resources to promote the development of small-scale energy efficiency and renewable energy projects and their financing through Central American financial institutions.
The non-reimbursable technical cooperation granted through this agreement amounts to US$95,000.00, which is complemented by BANDESAL’s cash contribution of US$11,000.00 and in-kind contribution of US$8,000. The funds will be used exclusively to finance Green Credit projects of Banco de Desarrollo de El Salvador.
BANDESAL is receiving this support after complying with the requisite of having appropriately used non-reimbursable cooperation funds from a CABEI Global Credit Line to finance projects through the financial intermediation resources that it offers. To date, BANDESAL has financed at least ten environmental investments through its Global Credit Line resources.
As part of the agreement, BANDESAL commits itself to training entrepreneurs in specific Energy Efficiency and Renewable Energy areas, in addition to teaching money saving practices that could be implemented at their companies to promote efficient resource use and, if possible, to generate their own energy.
Likewise, executives from the BANDESAL Economic Development Fund (FDE) will be trained to offer integral attention and expert advice to entrepreneurs who make use of these funds.
For its part, CABEI will be responsible for monitoring the progress of the agreement, which will complement other CABEI-run initiatives aimed at improving the MSME sector’s conditions and access to environmental investment financing.
BANDESAL President Ms. Mancía stated that, "The agreement is a challenge that we, as a development bank, fully assume in order to transform our country and promote green projects in line with the National Environmental Policy."
CABEI Director for El Salvador Mr. Guillermo Funes Cartagena reaffirmed the Bank’s commitment to supporting this type of initiative, which fosters the socioeconomic development of El Salvador and the region.
