Energy Sector Management Assistance Program2015-01-202015-01-202014-07https://hdl.handle.net/10986/21307Improving the energy efficiency (EE) of municipally owned buildings, such as schools and hospitals, and municipal infrastructure, such as public lighting, water supply, and district heating, offers budgetary savings on energy bills and a wide range of environmental and socioeconomic benefits. But relatively few municipal EE projects have been developed and implemented successfully. The challenges that limit EE investments in municipal buildings and facilities can be grouped into three broad areas: (i) a lack of awareness and incentives; (ii) insufficient implementation capacity; and (iii) limited access to financing. All three sets of challenges need to be addressed to scale up successful implementation of municipal EE projects. This Guidance Note focuses on the key issues faced by municipalities in accessing financing for EE investments, particularly for projects in the following four areas: indoor lighting, building retrofits, public lighting, and municipal utilities. The guidance note discusses the following potential financing mechanisms that can be used by municipalities to finance EE measures: budget financing, Funds developed specifically to address energy efficiency, public support to leverage commercial financing, and commercial financing.en-USCC BY 3.0 IGOACCESS TO FINANCINGACCESS TO FUNDADVISORY SERVICESALLOCATION OF FUNDSASSETSAUDITSAUTONOMYBALANCE SHEETSBANK FINANCINGBANK LENDINGBANK LOANSBANKING REGULATIONSBIDBOILERSBOND MARKETBORROWERBORROWINGBORROWING CAPACITIESBUDGETINGCAPACITY BUILDINGCAPITAL BASECAPITAL COSTCAPITAL EXPENDITURESCAPITAL INVESTMENTSCARBON FINANCINGCASH FLOWCASH FLOWSCOLLATERALCOLLATERAL REQUIREMENTSCOLLECTION PROCESSCOMMERCIAL BANKCOMMERCIAL BANK DEBTCOMMERCIAL BANK LENDINGCOMMERCIAL BANK LOANSCOMMERCIAL BANKSCOMMERCIAL DEBTCOMMERCIAL FINANCINGCOMMERCIAL LENDERSCOMMERCIAL LENDINGCOMMERCIAL LOANSCOMPACT FLUORESCENT LAMPSCOMPETITIVE BIDDINGCONTRACTUAL ARRANGEMENTCONTRACTUAL RELATIONSHIPCREDIT GUARANTEECREDIT GUARANTEESCREDIT LINECREDIT LINESCREDIT MARKETCREDIT MARKET ACCESSCREDIT MARKETSCREDIT RATINGCREDIT RISKCREDIT RISKSCREDITSCREDITWORTHINESSCURRENCYDEBTDEBT FINANCINGDEBT SERVICEDEBT SERVICE PAYMENTSDEPENDENTDEVELOPMENT BANKSDIRECT FINANCINGDISTRICT HEATINGDISTRICT HEATING SYSTEMSDONOR FUNDINGDONOR FUNDSDUE DILIGENCEECONOMIC GROWTHECONOMIES OF SCALEEFFICIENCY IMPROVEMENTEFFICIENT LIGHTINGELIGIBILITY CRITERIAENERGY BILLSENERGY COSTSENERGY EFFICIENCYENERGY MANAGEMENTENERGY SAVINGSENERGY SYSTEMSENERGY USEEQUIPMENTESCROWESCROW ACCOUNTEXPENDITUREEXPENDITURESEXTERNAL FINANCINGEXTERNAL FUNDEXTERNAL FUNDSEXTERNALITIESFACILITATIONFINANCIAL CAPACITYFINANCIAL DIFFICULTIESFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL POSITIONFINANCIAL PRODUCTSFINANCIAL STRENGTHFINANCIAL SUSTAINABILITYFINANCIAL VIABILITYFINANCIERFINANCIERSFINANCING COSTSFINANCING FACILITIESFINANCING FACILITYFINANCING SOURCESFINANCING · REQUIREMENTSFISCAL CAPACITYFISCAL DECENTRALIZATIONFUND MANAGERFUNDING SOURCEFUNDING SOURCESGOOD CREDITGOVERNMENT BUDGETGRANT FUNDINGGUARANTORHOUSEHOLDSIMPROVING ENERGY EFFICIENCYINITIAL FUNDINGINITIAL INVESTMENTINSTITUTIONAL CAPACITYINTEREST INCOMEINTERNAL FUNDINTERNAL FUNDSINTERNATIONAL BANKINTERNATIONAL FINANCIAL INSTITUTIONINTERNATIONAL FINANCIAL INSTITUTIONSINVESTMENT COSTINVESTMENT COSTSINVESTMENT FUNDSINVESTMENT VOLUMEISSUANCEJURISDICTIONJURISDICTIONSLACK OF AWARENESSLACK OF KNOWLEDGELARGE CITIESLAWSLEASE AGREEMENTLEASE PAYMENTSLEGISLATIONLENDERLENDERSLEVEL OF PAYMENTLEVERAGELIMITED ACCESSLIMITED BORROWING CAPACITYLOANLOAN AGREEMENTSLOAN AMOUNTSLOAN CONTRACTSLOAN DEFAULTLOAN DEFAULTSLOAN FUNDSLOAN GUARANTEESLOAN LOSSLOAN PRINCIPALLOAN REPAYMENTSLOAN TERMSLOANS FROM BANKSLOCAL BANKLOCAL BANKSLOCAL MARKETMANDATESMARKET CONDITIONSMARKET DEVELOPMENTMARKET PRICESMUNICIPAL ASSETSMUNICIPAL BONDMUNICIPAL BOND MARKETMUNICIPAL BONDSMUNICIPAL BORROWINGMUNICIPAL BUDGETMUNICIPAL BUDGETSMUNICIPAL CREDITMUNICIPAL CREDIT MARKETMUNICIPAL CREDIT MARKETSMUNICIPAL DEBTMUNICIPAL GOVERNMENTSMUNICIPAL REVENUESMUNICIPALITIESOPERATING COSTSOUTSTANDING LOANPARTIAL CREDITPARTIAL RISKPERFORMANCE RISKPERFORMANCE RISKSPORTFOLIOPRIVATE PARTIESPROCUREMENTPROCUREMENT POLICIESPROCUREMENTSPRODUCTION CREDITSPUBLIC FACILITIESPUBLIC FINANCINGPUBLIC FUNDSPUBLIC POLICIESPUBLIC TRANSPORTPUBLIC-PRIVATE PARTNERSHIPPUBLIC-PRIVATE PARTNERSHIPSRATING SYSTEMSREGULATORY FRAMEWORKREGULATORY FRAMEWORKSREPAYMENTREPAYMENTSRETURNRETURNSREVOLVING FUNDREVOLVING FUNDSRISK PERCEPTIONRISK SHARINGSAVINGSSUBSIDIARIESTAXTECHNICAL ASSISTANCETRANSACTIONTRANSACTION COSTSTRANSACTIONS COSTSTRUST FUNDUNIONURBAN DEVELOPMENTUSER CHARGESUTILITIESVILLAGEVILLAGESWATER SUPPLY10.1596/21307