EBRD with Honeywell in Multi-Project deal

May 13, 1997 Honeywell Inc. and the European Bank for Reconstruction and Development (EBRD) recently signed a Multi-Project Facility contract, worth up to $ 70 mm, to develop a series of energy service companies (ESCO's) across central and eastern Europe. It is the first such contract with a US based company.
This agreement is designed to promote energy efficiency in the region, as well as address the critical need for financing of such projects. "The new companies will be able to provide the essential link between the customer who wants to invest in energy efficiency, but has no access to conventional financing, and equity investors who want to support and participate in the region's growth, but have no way of accessing the returns of the project and ensuring the repayment," said Giannantonio Ferrari, Honeywell president and chief operating officer.
The Multi-Project Facility will help Honeywell establish, acquire and operate energy service companies. Those ESCO's will provide energy saving services toboth public and private sector clients through retrofitting existing buildings, and working with industrial businesses and district heating companies. In a number of pilot and demonstration projects around the region, Honeywell has proven that modern control technology can save up to half of the energy currently consumed. Honeywell will initially focus its efforts in Poland, the Czech Republic, Slovakia and Hungary. Future work in Bulgaria, Romania, Ukraine and Russia is also possible.