The Law on Environmental Protection Fund (Official Gazette No 72/09 and 101/11), provides the adoption of the Annual Program for Financing Energy Efficiency Projects in 2012. The annual programme has been adopted in first quarter of 2012 (March, 2012).
According to the Annual Program draft, the anticipated amount of funding for energy efficiency raising projects is RSD 1,300,000,000.00. These funds are anticipated to be given as grants.
The Annual Program draft provides that RSD 1,000,000,000 is given to finance the participation of Serbia in the implementation of individual projects, i.e. financing adaptation (reconstruction) projects for objects of public interest, the modernization of heating systems and installation of equipment for energy efficient public lighting. Anticipated fund users in these projects are local self-government units, legal entities founded by the republic, AP, or a local self-government unit. Financing energy efficiency projects shall be made in accordance with the Regulations on conditions to be met by beneficiaries of the Environmental Protection Fund's assets, the conditions and manner of Fund assets allocation, the criteria and standards for evaluating requests for asset allocation and the monitoring of proper use of assets and contractual rights and obligations of the Fund (Official Gazette 16/11)
Based on the annual programme, there will be a public invitation for LSGU and legal entities founded by RS, AP or LSGU to finance energy efficiency raising projects (in absolute terms or in a certain percentage according to the assessed value of competition, within the maximum amount), and the choice (scoring) of projects will be performed in line with the Regulations and conditions of the competition (the Project Selection Board, which will be formed by a special order will constitute a proposal for project selection, while the final selection of projects and the decision on the amount of funds will be performed by the Fund?s Board of Directors). The Fund will conclude individual contracts with the beneficiaries, who will be obliged to select bidders in a public procurement.
The Annual Program draft provides that the financing of participation of Serbia in individual projects (reconstruction/renovation of individual residential buildings, modernization of heating systems, purchase of regulating devices) amounts to RSD 300,000,000. It is anticipated that the beneficiaries of the Fund?s assets are commercial banks (the Fund announces an open invitation to banks for the programme of crediting of natural persons in accordance with the Programme) and that the borrowers are natural persons and that the fund subsidizes the interest rate of commercial banks (the Programme will define the terms of crediting).
The program will provide the obligation of reporting to the Fund on project implementation (the beneficiary shall submit the final report containing an overview of the measures taken, results, an overview of funds spent and an explanation for the plans for deviations from the project). When it comes to projects where the beneficiary of the Fund's assets is a bank (projects for natural persons), there is an obligation of delivering the final report in order to evaluate the effects of the project.
The Environmental Protection Fund will report to the Government on the implementation of the Programme through the Ministry of Environment, Mining and Spatial Planning.