World Bank India Energy Efficiency Scale-up Program Guarantee

The project development objectives are to scale up energy savings in residential and public sectors, strengthen EESL’sinstitutional capacity, and enhance its access to commercial financing. The scope includes support to Government of India’s “Unnat Jyoti by Affordable LEDs for All” (UJALA) initiative implemented by EESL, covering Light Emitting Diode (LED) lightbulbs, LED tubelights, and ceiling fans; and the “Street Lighting National Program” (SLNP). The proposed PforR operation would support the scale up of EE market transformation under UJALA and SLNP; as well as the incorporation of sustainability elements into EESL’s newer business areas and institutional strengthening of EESL for sustainable scale-up. In addition, through the provision of an IPF loan/bond guarantee, the operation will enhance EESL’s access to commercial financing markets which would further scale investments in UJALA and SLNP.comprises a US$220 million Program for Results (PforR) loan and a US$80 million loan/bond guarantee to support EESL in raising commercial financing for scaling up its EE programs.The proposed IBRD Guarantee will leverage existing financing sources by mobilizing commercialfinancing to support the Government Program. It is proposed that IBRD provides a guarantee of up to US$80million to either a loan or a bond to enhance EESL’s creditworthiness and enable it to raise up to an estimatedUS$200 million (or the equivalent in INR) of commercial financing.

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