Ratings for the Energy Efficiency Project for Bulgaria were as follows: outcomes were satisfactory; risk to development outcome was low or negligible; Bank performance was satisfactory; and borrower's performance was also satisfactory. Some lessons includes: before introducing a new instrument on the market, carefully determine the basic assumptions for why and under which circumstances the instrument is intended to work and then make a careful reality check in the form of a market survey. Often, a new approach tested successfully in one country has less successful outcomes when introduced in another country.
Innovative projects are particularly vulnerable to developments in the external environment that are different from what was expected at appraisal. A mid-term review should carefully analyze whether the original project philosophy still holds. Lured by supposedly high leveraging ratios, publicly backed guarantees have become a popular choice for finance-sector engagement programs.
The development of the market for Energy Efficiency (EE) in the multi-apartment building sector depends on the creation of well-functioning condominium associations and on the introduction of 'energy poverty' schemes to solve the issue of poor households living in those apartment buildings that are unable to access loans to pay for their share of the total cost of the EE investment. In countries, like Bulgaria, with high energy saving potential, sufficient scope exists for the financing and implementation of EE projects without investment grant support.
World Bank.Document Date: 2010/09/22.Document Type: Implementation Completion and Results Report.Report Number: ICR1575.Volume No: 1 of 1
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