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ABOUT THE PROJECT

BEEP - Bosnia Energy Efficency Project

Bosnia and Herzegovina recognized the importance of energy efficiency, and in order to achieve economic viability of the energy efficiency projects and a process of becoming a member of EU, has joined the financing of the project of Energy efficiency BiH (BEEP) with credit assets of International Development Association (IDA).

Financing agreement worth 32 million dollars was signed, out of which 19.23 million dollars were allocated to Federation of BiH. Federal Ministry of physical Planning, through Implementation unit, is responsible for the preparation of coordination, management and implementation of the Project in the Federation of Bosnia and Herzegovina.

The development objective of the Project is to demonstrate the benefits of improving energy efficiency in the public sector facilities and to support the development of flexible models for financing the energy efficiency. The project consists of three components.

First component, investments in energy efficiency in public sector facilities, will support investments in energy efficiency (sub-projects) in schools, hospitals and clinical centres. This component will finance improvement of energy efficiency as well as related consultancy services of a technical nature (for example, energy audits, technical and social monitoring and evaluation, technical design, control, and handover of sub-projects).

Second component, to support the development of flexible funding mechanisms and capacity building, will support the development of sustainable financing mechanisms of energy efficiency in the public sector, strengthen the implementation capacity and help increase public awareness of the energy efficiency.
Third component, project management, will ensure the Project is managed efficiently by the project implementation unit (PIU) through financing additional experts, training for PIU staff and covering operating costs.

Investments in energy efficiency will reduce energy consumption in selected public sector facilities and demonstrate the economic viability of improving energy efficiency, including reduced operating costs and public expenditure in this regard. Given the scope of the Project, it is estimated that about 80,000 users of public facilities will benefit from the increase of energy efficiency. Given that with Project, investments in public education and health institutions as planned, whose users belong to the most vulnerable stratum of society (children, women, and patients), the importance of this project is even greater.

The project will also provide support from the Government committed to fulfilling the obligations under the Agreement of Energy community. Governments have committed, under that agreement, to take over and implement relevant directives and regulations in the field of energy efficiency (EU Direktiva2006/32/EC).

The activities to be implemented under the project will yield results such as: - Reduced CO2 emissions (the transition to cleaner energy sources, reduced air pollution during winter season caused by improper and inefficient combustion of fuels that are currently in the use) - Increase the level of comfort in facilities, a positive impact on employment in the construction sector - Increase the awareness of energy efficiency in the participating communities - Reduce local pollution

Semi Annual Report