Energy Savings Insurance (ESI) for private energy efficiency investments by Small and Medium-Sized Enterprises (SMEs)

Energy Savings Insurance (ESI) for private energy efficiency investments by Small and Medium-Sized Enterprises (SMEs)

  • Status Under implementation
  • Date approved 30 Jun 2016 at B.13
  • Est. completion Under revision
  • ESS Category Category C

Improving access to financing for SMEs in El Salvador to replace energy-intensive motors, air-conditioning, refrigeration and boilers, increasing energy efficiency and developing a new market in energy services.

The project will develop a package of measures to encourage energy efficiency investments by SMEs in El Salvador. El Salvadoran SMEs, making up over 99% of the country’s enterprises, suffer from obsolete equipment, the result of low levels of investment, and limited access to long-term credit. There are no Energy Services Companies (ESCOs) and no market for financing longer-term energy efficiency projects, which are perceived as risky, unstructured investments. The energy savings insurance scheme developed will include risk-sharing contracts,  independent technical validation, insurance and specific financial instruments, significantly lowering investment risks for banks and SMEs.

GCF will loan USD 20M to BANDESAL (the National Development Bank of El Salvador), who will add USD 20M of their own resources. This will contribute to a credit line available for local banks to fund SME energy efficiency projects at concessional rates, to be repaid through future energy savings. Loan repayments will finance additional sub-projects thanks to the use of a revolving fund. The equipment targeted for upgrade is widely used and has large energy savings potential.

The project has an estimated lifespan of 15 years.

Total project value


Tonnes of emissions avoided




Result areas

Project timeline


12 May 2015 - 416 days

Concept note received

12 May 2015

Funding proposal received

31 Jul 2015


30 Jun 2016 - 937 days

Approved by GCF Board

30 Jun 2016

Cleared by iTAP

30 Jun 2016

Legal opinion on AE's Internal Approval

27 Jul 2018

FAA executed

24 Dec 2018

Under implementation

22 Jan 2019 - 1,302 days so far

FAA effective

22 Jan 2019

Disbursement - USD 1,700,000

30 Jun 2020

Disbursement - USD 2,000,000

30 Jun 2020

Disbursement - USD 4,500,000

04 Sep 2021


Est. completion date under revision

One region

  • Latin America and the Caribbean

One country

  • Financing
    • Private sector
    • Public sector
  • Size
    • Micro
    • Small
    • Medium
    • Large

GCF financing38% disbursed

LoanUSD 20,000,000
GrantUSD 1,700,000
Total GCF Financing
USD 21,700,000


Co-FinancingLoanUSD 20,000,000
Total Co-Financing
USD 20,000,000

GCF Contacts

General media inquiries

GCF Communications
Phone +82 32 4458 6338 (KST)
Send e-mail

Request for information

GCF Information Disclosure
Request information about this project

Project complaints and grievances

GCF Independent Redress Mechanism (IRM)
Phone +82 32 458 6186 (KST)
File a complaint

Integrity issues

GCF Independent Integrity Unity (IIU)
Phone +82 32 458 6155 (KST)
Send e-mail

Accredited Entity

Inter-American Development Bank
Ms. Victoria Eugenia Florez Toro

Chief, Resource Mobilization Division
More contacts

National Designated Authority

El Salvador
Ministry of Environment and Natural Resources (MARN)
Mr. Miguel Alberto Gallardo Meléndez Primary
Director of Ecosystems and Biodiversity
Phone +(503) 2132-6224
Phone +(503) 2132-6252
His Excellency Mr. Fernando Andrés López Larreynaga Primary
Minister of Environment and Natural Resources
Kilómetro 5 ½ Carretera a Santa Tecla, Col. Las Mercedes, Frente a Círculo Miliar, Edificios MARN, San Salvador, El Salvador