In the case of mass energy supply projects executed by local governments and government-owned institutions, the expenses for the purchase of the building site for the purpose of installing facilities may be included. In the case of provincial energy development projects executed by local governments the expenses for feasibility studies may also be included. Permitted loan components for working capital are confined to the expenses needed for the operation of the facilities for the initial 3 months period. Loans carry 5.5 - 7.5 per cent of interest rate equivalent to about half of the going market or prime rates. Up to 90-100 per cent of investment cost can be covered by loans.
Funds are available to both public and private sector companies.
Figure 3.2.1 describes the loan application and recommendation procedure. Figure 3.2.1 Loan application and approval procedure top 5.2 Loan approval and repayment The banks assess the size of loan required to carry out the investment plan through a field survey. Loans are approved within 30 days following the receipt of the loan application. The loans may be approved within 45 days. Lending conditions of the respective financial institutions apply.