Administrative
Unit
The Government of Sri Lanka, in consultation with the World Bank,
has appointed DFCC Bank as the RERED Project Administrative Unit (AU)
to implement the Project. To avoid conflicts of interest, the AU is
independent of and separated from the Participating Credit Institution
(PCI) function of DFCC Bank. The AU is primarily responsible for the
administration of the IDA credit line and GEF grant funds, and provision
of Project support.
Eligible Sub-projects and
Investment Enterprises Sub-projects are investment projects utilising the
credit and/or grant funding provided by the RERED Project. Eligible
sub-projects are private investment proposals for:
Grid-connected renewable
energy power projects (with capacity not more than about 10
MW)
Off-grid village based
renewable energy power projects
Solar home systems (SHS)
Other renewable energy
investments
Energy efficiency, conservation
and demand side management (DSM) investments
An investment enterprise eligible for financing may be any private enterprise,
non-governmental organisation (NGO), co-operative or individual operating
in Sri Lanka. Subject to meeting PCI’s credit worthiness assessment,
they obtain medium or long-term sub-loans from PCIs to establish eligible
sub-projects and procure assets. As defined in the Operating Guidelines,
certain types of sub-projects qualify for grant assistance.
Procedures
Project administration is carried out by the Administrative Unit (AU).
Lending to sub-projects is carried out by the participating credit
institutions (PCIs). Counterpart funds for technical assistance are
provided by project beneficiaries and GOSL.
Two Special Dollar Accounts (SDAs) are maintained at the Central Bank
of Sri Lanka to deposit the proceeds of IDA credit and GEF grant.
The credit SDA is used to refinance PCIs, who approve sub-loans to
project beneficiaries following their own credit evaluation procedures
while ensuring compliance with Project requirements. Once the sub-loan
has been approved, PCIs forward a completed loan Refinance Application
(RA) form to the AU requesting commitment for a maximum of 80% of
the approved sub-loan amount. As and when the PCI disburses funds
against the approved sub-loan amount, a Loan Disbursement Request
(LDR) form is forwarded by the PCI (with appropriate supporting documents)
to the AU for obtaining a maximum refinance of 80% of the amount disbursed
to the beneficiary. Release of grant funds by the AU is based on evidence
of work done, and for routine operations a Grant Disbursement Request
(GDR) will accompany supporting documents. Specific funds flow arrangements
under the Credit Programme and details of supporting documentation
for reimbursements are given in the Operations Manual and Operating
Guidelines.
