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The procedure for the state support program for EE renovation of apartments and private houses has been approved in Armenia
The government of the Republic of Armenia has approved the procedure for the implementation of the state support program for energy efficient renovation of apartments and private houses. The program envisages full or partial subsidization of interest rates on loans for energy efficient renovation of apartments.
The procedure defines the requirements for the beneficiaries, the criteria for energy efficiency that are eligible within the scope of the programme, the loan expenditure options, the loan interest rate subsidy procedure, the grounds for termination of the subsidy, the requirements for project monitoring and accountability.
In the context of the program, both the loans for energy efficient retrofit / repair and the factoring are considered as a loan, taking into account that the latter financial mechanism is more applicable, in particular, for the purchase of construction materials, equipment and systems.
The procedure defines a rather flexible mechanism for program implementation.
A two-tier system for monitoring the purpose of the loan is envisaged, first by the financial institutions, then by the Ministry of Territorial Administration and Infrastructure of the RA (the Covenant of Mayors Coordinator in Armenia).
The following issues have been stipulated: the requirement to spend at least 70% of the total loan amount non-cash, as well as the need to document loan expenditure directions for at least 80% of loan expenditure directions and for 100% of expenditures on energy efficient measures.
The provisions of the Government order will apply to loans provided until July 1, 2023, after the decision enters into force.
Building (especially, residential) sector is responsible for the considerable share of energy consumption and associated CO2 emissions in the Armenian municipalities, including the Covenant of Mayors signatories.
At the same time, the sector has huge untapped potential for GHG emission reduction via implementation of energy efficient measures, including retrofit and repair of individual apartments and private houses.
In this context, the state support program for energy efficient renovation of apartments and private houses may contribute greatly to unlocking the energy savings potential of the buildings sector, thus, contributing to fulfilment of Sustainable Energy and Climate Action Plans (SECAP) prepared by CoM signatories in Armenia.