Summary This paper describes the Krakow Energy Efficiency Project whose project proponent were the World Bank and the Government of Poland. The project’s implementation area was in the Krakow region in Poland. The project is a model of a private-public sector partnership, with the World Bank providing funding to a government development scheme. The project was approved in June 2001 and decommissioning date was in December 2007 at a cost of up to US$7.5 million. The Krakow City population prior to the project implementation was about 750million. A significant portion of the population relied on the district heating for commercial and residential purposes. Krakow’s history in the 1990s decade indicated a shift in the type of energy used from coal or coke stack burning towards gas-fueled or connection to the municipal heating systems. This had a significant positive implication towards achieving energy efficiency that had two main benefits: consumers would cut spending on energy costs as well as enhance environment care through reduction of energy used and the corresponding pollutants emitted while combusting. There is growing need to conserve the available environment resources. It is the reality that some of the naturally occurring resources were abundant in the past but now need special humankind protection to sustain their supply. This means that natural resources have a limit in terms of supply. The concept of energy efficiency embraces this fact. This project was to achieve the energy efficiency goal by improving the heating systems that are in use within the Krakow region. The first objective envisaged to maintain an ongoing modernization program for the district heating systems. The second objective was to enhance energy efficiency at the consumption stage by providing end-user solutions to lessen heat energy used by the consumers. The third objective was to build a knowledge base of mechanisms intended to inform prospective financiers for the energy efficiency projects in the Krakow region. Introduction According to the United Nations Environment Programme (2006), the energy efficiency concept will constitute adjustment made in an effort to reduce the amount of energy used to achieve the expected service (p.1). This means in spite of an energy requirement remaining constant or increasing, proactive measures towards energy efficiency taken will reduce the energy used. The Krakow Energy Efficiency Project implementation area was in Malopolskie Voivodship (the Krakow region) in Poland, with the World Bank financing via a loan totaling up to US$7.5 million. The project’s approval was in June 2001 while the decommissioning date was December 2007. This was a private-public sector initiative between the World Bank and the Government of Poland. This project was to provide investment support for the energy users in Krakow as a development mechanism, achieve environment care through financing energy efficiency, and enhance institutional capacities. The main criteria that World Bank applied to approve and offer assistance anchored on the need for advancing strategic infrastructural development that would contribute to the overall national goal while incorporating private player