Millennium Foundation Kosovo (MFK), Kosovo Credit Guarantee Fund (KCGF), and the Ministry of Finance (MOF) of the Republic of Kosovo signed a Letter of Intent to unlock up to 25 million euros in commercial financing for renewable energy and energy efficiency projects. The parties signed the letter in the presence of the Millennium Challenge Corporation and a delegation from the U.S. International Development Finance Corporation (DFC), which is visiting Kosovo to advance economic cooperation and development.
The U.S. International Development Finance Corporation (DFC) will be working closely with MFK, KCGF, and the MOF to provide financial instruments that provide partial credit risk protection to the Renewable Energy Window portfolio for KCGF and its partner banks.
“The Government of Kosovo is focused to both help the private sector obtain necessary capital and guarantees to create growth and employment, but to also promote innovative solutions in the financial sector. We appreciate hard work put forth by the KCGF and MFK to make this window a reality and we thank MCC for the financial support they have provided so far to the KCGF. Furthermore, we stand ready to work with DFC to obtain the counter-guarantee mechanisms necessary to lower the overall risk and the interest rates for the Kosovar companies,” said Minister of Finance Hykmete Bajrami.
Besnik Berisha, Head of KCGF, stated that “We believe that this quadrilateral cooperation, which today has culminated with the expression of commitment from GOK and DFC, will give an impetus to our joint effort with MFK for improving business environment for private entrepreneurs, on investing in energy efficiency and production of energy from environmentally friendly energy sources. In the short history of our institution, this is another step, toward consolidation and strengthening of the institution. Especially, we praise the DFC interest, as a new partner of KCGF, to contribute for creating a better environment for private investment in the economy of Republic of Kosovo” Mr. Berisha added.
Sarah Olmstead, country Director for MCC added, “We are so excited to be able to bring this support to the private sector at this crucial time of economic recovery in Kosovo. This activity will not only bring needed financial support to energy entrepreneurs, but also benefit the banking sector, which we expect to have broad benefits to economic growth and job creation in the future.”
Petrit Selimi, MFK CEO said that “Today marks important milestone in confirming a multilateral cooperation that is bringing added value to our work in Kosovo – connecting private investors, banking system, and Kosovo institutions in a way that will unlock new capital and fasten the necessary investments in renewable energy and energy efficiency investments”
Last year, the MFK signed an agreement with KCGF to create a new window of guarantees for private sector investing in independent power generation and other investments in energy. MFK also signed a contract with the US-based Financial Markets International, Inc. (FMI) to commence the implementation of this project, supported by the MCC. This project aims to support KCGF, the Renewable Energy IPPs, as well as local banks by focusing on three complementary interventions to increase solar energy financing.