Bank of Palestine (BOP) and Proparco in cooperation with the EU have jointly announced the signing of Sunref II Green Program after successfully completing Sunref I, local media said.
The purpose of SUNREF Green Finance Program is to provide solutions to promote energy efficiency and renewable energy projects for the private sector.
The program plays a crucial role in the Palestinian ecological system since energy services’ costs are high and supply of electricity is limited with increasing demand, media reports said.
Following three successful years of operations of SUNREF I resulting in over 80 investment projects, SUNREF II was launched with a more focus on energy efficiency.
This year SUNREF II has an additional Islamic-lending offer through the inclusion of the Arab Islamic Bank (a subsidiary of Bank of Palestine Group).
BOP said in a press release that the package is comprised of $30 million credit facility provided by Proparco coupled with EU grants along with technical assistance and incentives to SMEs.
The agreement is part of EUR 200 million ($224.97 million) agreements by Team Europe with several Palestinian Banks aimed at boosting the Palestinian economy, supporting sustainable green investment and COVID19 economic recovery.
Media reports said that the agreement will be financing projects in the West Bank, Gaza and East Jerusalem.
SUNREF Program is fully aligned with Bank of Palestine Group’s strategies in ESG, financial inclusion and in sustainability.
“We hope to build and grow a community that supports clean energy projects particularly SMEs aiming at developing the economy, sustaining the environment and providing society with higher quality standards of living,” said Hashim Shawa, Bank of Palestine Group Chairman.
Shawa expressed his gratitude to Proparco, the AFD Group and the EU for their steadfast engagement in the Palestinian economic development, reports claimed.
The signing ceremony was held at the third meeting of the EU- Palestine Investment Platform at the Palestinian Prime Minister’s Office in Ramallah.