Uruguay Receives $6.8 Million Grant To Boost Energy Efficiency

Washington, May 14, 2004 – The World Bank Board of Directors yesterday agreed that the Bank will manage the implementation of the Uruguay Energy Efficiency Project.  This project is funded by a $6.8 million grant from the Global Environment Facility, whose Council approved the grant in May 2003.

The overall objectives of the project include reducing Uruguay’s reliance on imported fuel, improving air quality, and reducing the cost of energy in the production of goods and services.

“Energy efficiency will help reduce Uruguay’s dependence on imported fuels and cut emissions that damage the environment,” said Axel van Trotsenburg, the World Bank’s Country Director for Argentina, Chile, Paraguay and Uruguay.

The six year project includes assistance to Uruguay’s Ministry of Industry, Energy and Mining for development of energy efficiency policies;  the creation of voluntary standards for home appliances and a labeling program that would give consumers information on appliance efficiency; and support for an investment fund to encourage investment by businesses in  projects to utilize energy more efficiently. 

The project will also assist the Administración de Usinas y Trasmisiones Eléctricas (UTE)  in delivery of energy-efficient lights, water heaters and other equipment to residential and commercial customers in a number of municipalities; and provision  of   2,000 solar electricity systems to poor families, dispersed in the countryside, whose homes lack electricity.

Specific goals include reducing the emissions of pollutants; lending at least $4.5 million to companies for undertaking energy efficiency projects; and the spending of at least $6 million on efficiency projects by UTE.

The Global Environment Facility grant will be complemented by contributions totaling $14.28 from businesses, UTE and the government.

About the GEF

The Global Environment Facility (GEF) is an international financial organization with 176 member

countries that acts as a major catalyst for improving the global environment. GEF grants support projects in developing countries in the areas of biodiversity, climate change, international waters, land degradation, the ozone layer, and persistent organic pollutants.

Since its creation in 1991, the GEF has allocated $4.5 billion in grants to support more than 1,300 projects in more than 140 developing nations and countries with economies in transition. GEF has committed approximately US $117.4 million in small grants to NGOs and community groups in developing countries, directly involving them in addressing global environmental problems.