Eight Participating Credit Institutions (PCIs) comprising of a licensed specialised bank, five commercial banks, one leasing company, and one finance company presently participate in the RERED Project. Each PCI is
assessed on its ability to meet the eligibility criteria for participating
in the RERED Project. PCIs bear the responsibility for the appraisal
and follow-up of sub-projects and assume the credit risk on the sub-loans
granted. They are also responsible for repaying the refinance received
on sub-loans to Government according to the agreed amortisation schedule,
regardless of whether the PCIs receive repayment from their sub-borrowers
(investment enterprises) to whom sub-loans were made.
The PCIs ensure that sub-projects (investment projects) meet GOSL
and IDA-mandated environmental and social safeguards. In addition,
PCIs are responsible for ensuring that procurements made by sub-borrowers
comply with World Bank guidelines and that financing provided (including
GEF grants, if any) is applied fully and exclusively for eligible
expenditures of the sub-projects.
The terms of the sub-loan including interest rate, debt:equity ratio,
tenure, grace period and security are determined by PCIs in agreement
with their clients.
