Guarantees for street lighting
- There is a description of the procedure for providing guarantees for the modernisation of urban street lighting systems.
- The Order on amending the Description of the procedure for providing guarantees for the modernisation of urban street lighting systems (replaces point 37 on the payback period for investments).
How does it work?
A tripartite agreement of 18 February 2015 between the Ministries of Finance, Energy and VIPA established the Energy Efficiency Fund (ENEF), financed by the European Regional Development Fund, with VIPA acting as the fund manager.
On 26 July 2018, a new Description of the Procedure for the Provision of Guarantees for the Modernisation of Urban Street Lighting Systems (hereafter ‘the Description’) was approved, which regulates the conditions for the provision of guarantees and requirements for projects for the modernisation of urban street lighting systems.
Municipalities wishing to benefit from the guarantee can implement the projects themselves as well as through electricity system commercial operators (ESCOs). By granting a guarantee, VIPA undertakes to reimburse the creditor and/or the financier for the borrower’s outstanding obligations under the loan agreement granted to finance the urban street lighting modernisation project.