PROGRAM-FOR-RESULTS INFORMATION DOCUMENT (PID)
CONCEPT STAGE
Report No.:PID0029830
Program Name National Program for Residential Energy Efficiency
Region Europe and Central Asia Region
Country Bulgaria
Sector Energy Efficiency in Heat and Power
Lending Instrument Program-For-Results
Program ID P154710
Borrower(s) Bulgarian Development Bank
Implementing Agency Bulgarian Development Bank
Date PID Prepared August 3, 2015
Estimated Date of Appraisal November 6, 2015
Completion
Estimated Date of Board December 17, 2015
Approval
Program Name National Program for Residential Energy Efficiency
Region Europe and Central Asia Region
Country Bulgaria
Introduction and Context
After years of strong performance in the run-up to the European Union (EU) accession,
Bulgaria’s growth has slowed down and poverty remains the highest in Europe. Building on the
achievements of the last decade and moving to a higher growth path in the current economic
environment, requires bold government actions and investments. Recognizing the potential of
targeted public investment policies to stimulate more inclusive and climate smart growth, the
Government launched on February 1, 2015 a National Energy Efficiency Program for Energy
Efficiency in Multifamily Buildings (referred as ‘the program’ hereinafter).
The program aims to tap into the vast energy savings potential in the residential sector, which
accounts for one fourth of the country’s final energy consumption. Pre-1990 buildings account
for 90% of the building stock, they are in very poor condition due to lack of maintenance, and
their energy consumption is at least twice as high as those built according to current standard
mostly due to the very low quality of insulation
Program for Results (PforR) is proposed as a suitable instrument to support the Government’s
program because: (i) it is an ongoing program implemented using national standards and
systems (technical, fiduciary, and safeguards), (ii) it would allow to focus on improving the
overall efficiency and effectiveness of the program implementation, and (iii) it has tangible and
measurable results which are fully aligned with the country’s energy savings and GHG
emissions reduction targets.
The World Bank has substantial experience with implementing building retrofit programs in the
ECA Region, including in multifamily apartment buildings (e.g., Belarus, Lithuania, Poland),
which can contribute to strengthening this Program and help address bottlenecks that are likely
to arise during implementation.
Program Development Objective(s)
The program development objective is to improve the Energy Efficiency (EE), comfort and
safety in renovated multifamily apartment buildings.
Key program results would include:
Reduced energy consumption in renovated multifamily buildings meeting a Class “C�?
(EU energy efficiency certification) and compliant with building code for structural
integrity and safety
Reduced energy consumption in renovated buildings
Reduction of CO2 emissions as a result of energy savings
Increased household satisfaction for improvements in air quality, safety, and indoor
temperature
Strengthened capacity to plan and implement EE renovations in residential buildings by
the Government of Bulgaria, municipalities, and Home Owners Associations (HoAs).
Program Description
The key characteristics of the Program include the following:
i. Targeting: Residential prefabricated concrete panel buildings, with at least 36
apartments. Eligible buildings will have to have a registered HoA and reach a 100%
agreement of the owners to participate in the Program. HOAs will be selected on a “first -
come first-serve�? basis.
ii. Financial support: Up to 100% grant support for eligible expenditures covering mainly
measures to improve the EE of the buildings and measures to improve the structural
soundness of the buildings to comply with the current building code. Measures to be
implemented should bring the energy consumption of buildings to at least Class C
(energy use of 191 kWh/m2 to 240 kWh/m2)1 at the lowest cost.
iii. Implementation mechanisms: The Program will be administered mainly through
municipalities. All 265 municipalities are eligible to participate in the Program. They
would be responsible for the procurement and supervision of the energy and structural
audits, detailed designs, construction permits, construction works, construction
supervision and building certification. Procurement will be done in accordance with the
Bulgarian Public Procurement Law. Supervision and oversight will be done in line with
existing national legislation and auditing and construction standards. District Governors
in their capacity of representatives of the state have an oversight role of the Program in
their respective district.
iv. Financing: The overall Program cost is estimated at BGN 1 billion which would be
financed through sovereign guaranteed loans which have been included in the budget for
2015. The Bulgarian Development Bank (BDB) will be responsible for mobilizing the
financing for the Program and channeling the resources to Municipalities according to
signed contracts with the municipalities and District Governors.
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Based on the Bulgarian transposition of the European Energy Performance in Buildings Directive (EPBD).
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Initial Environmental and Social Screening
The program will predominately have long-term positive effects once the buildings have been
renovated, while potential negative impacts will be short-term and linked to the
construction/rehabilitation phase. The positive expected environmental and social impacts
include among others: a) a reduction in greenhouse gas emissions associated with a decrease in
in energy consumption; b) positive visual impacts on the urban environment due to the
renovation of old buildings; c) improvements in living conditions, d) reduced burden of energy
expenditures in the household’s budgets –especially middle and lower-income.
The negative environmental and social impacts are expected to be low to moderate and site
specific. The expected negative environmental impacts include: a) impact on ambient air quality
due to construction works (dust particles and volatile organic compounds from solvents); b)
generation of construction and household waste, and to a lesser extend hazardous waste:
asbestos contaminated waste, oil contaminated parts of boilers, oiled filters and cloths, etc.; c)
noise emission occurring during the construction works phase; and d) impact on soils tied to the
possibility of inadequate waste handling, transport or/and working machinery handling.
Tentative financing
Source: ($m.)
Borrower/Recipient
IBRD 108.6
IDA
Others (EIB, CEDB) 433.9
Total 542.5
Contact point
World Bank
Contact: Claudia Ines Vasquez Suarez
Title: Energy Economist
Tel: (1) 202 458 2720
Email: cvasquez@worldbank.org
Borrower/Implementing Agency
Bulgarian Development Bank
Contact: Bilian Balev
Title: Deputy Chairman of the Management Board
Email: Balev.b@bdbank.bg
For more information contact:
The InfoShop
The World Bank
1818 H Street, NW
Washington, D.C. 20433
Telephone: (202) 458-4500
Fax: (202) 522-1500
Web: http://www.worldbank.org/infoshop
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