The development objective of the Municipal Energy Efficiency Project for Mexico is to promote the efficient use of energy in the Borrower’s municipalities by carrying out energy efficiency investments in selected municipal sectors and contribute to strengthening the enabling environment.
There are two components to the project, the first component is Policy development and institutional strengthening. This component will strengthen the enabling environment for EE at the municipal level, and contribute to the identification of potential subprojects that can feed into a pipeline beyond the project’s life.
The component will finance the following sub-components:
(a) capacity building on municipal EE;
(b) sector-wide policy support, including a framework to scale-up activities piloted under this operation with a view to transition to a more commercial, sustainable program; and
(c) project monitoring, and management activities.
The second component is the Municipal EE investments. This component would support cost-effective EE investments in municipal streetlight, water and wastewater, and building sectors. Activities to be financed include:
(i) the preparation of feasibility studies, project designs, and bidding documents for the implementation of identified priority investments (with a bundled approach to the extent possible per technology), and
ii) acquisition and installation of items necessary to implement the agreed EE measures.