MANHASSET, N.Y. International Finance Corp., the private-sector arm of the World Bank, will guarantee half of the $231 million in government loans to support energy efficiency upgrades in Hungary's schools.
Approximately 2,000 schools are being assessed as part of the GoH Szemunk Fenye program, an effort to mobilize energy financing
According to the World Bank agency, replacing inefficient incandescent lamps with modern fluorescent lighting systems could reduce energy consumption by as much as 35 percent. Also, replacing oil-burning stoves with more efficient gas-fired condensing boilers could save an additional 30 percent in energy consumption.
When fully implemented, expected carbon dioxide savings are estimated to reach as high as 30,000 tons per year.
"Thanks to the unprecedented scale that this public-private partnership provides, the program will bring economic, environmental and social benefits to communities throughout Hungary and may be replicated elsewhere in emerging markets," Jyrki Koskelo, IFC's Global Financial Markets director, said in a statement.
OTP Bank, Hungary's leading commercial bank, is a member of the consortium that won a government contract to implement the energy program.
IFC's mission is to promote private-sector investment in developing countries.