Through the Revolving Facility for Cleaner Production NEFCO offers financing on favorable terms for projects that improve resource management. Loans are provided both to private and municipal enterprises in Russia, Ukraine and Belarus. The repayment of the loan is directly tied to the savings of the investment.

The cleaner production investments aim at conserving raw materials and energy, eliminating toxic raw materials and reducing the quantity and toxicity of all emissions and wastes before they leave the process. Cleaner production is generally achieved by upgrading technology and production methods.

Implemented projects
So far 41 projects have been implemented, mainly in the private industry sector, and 20 new projects are in pipeline for NEFCO's consideration. The total investment in these 41 projects is EUR 12,8 million.

Project criteria

• annual savings of approx. 25% of the investment cost
• significant environmental effects shall be achieved
• local contribution required
• collateral required
• private or municipal company with existing production as borrower
• procurement of goods, works and services financed shall be open and fair

Typical projects approved for financing

• installation of new and more efficient heating boilers
• installation of new pumps and valves
• recirculation and reuse of water
• installation of regulation and monitoring equipment
• recovery of material from waste tailings
• installation of new, more resource efficient equipment

Project monitoring and reporting to NEFCO

• the project implementation is monitored by local and/or Nordic consultants in order to secure sustainable solutions and good quality
• no extra cost for the borrower, consultants and legal costs are paid by NEFCO
• cooperation with local Cleaner Production Centers have been established and developed

NEFCO's Facility for Cleaner Production projects amounts to DKK 110 million (EUR 14.8 million).

Read more: Cleaner Production – Case Studies