Procedures

financial intermediaries

Initial phase
The process initiates with the interest of the company to put into consideration of Green Credit Line a project of environmental investment. In the initial phase, the next activities are developed:

  • The first step, the interested company has to apply to the Line of Environmental Credit, it has to formulate the project in the format, which has the purpose to define the project, the amount of inversion, the (theoretical) environmental impact, the technology to be used, and the cash flow of the project. It is possible to seek for supporting from the engineering companies or from the equipment supplier, to fill the project’s format.
     
  • Once it is formulated, the company can send it directly to the National Cleaner Production Center, or to the financial intermediary chosen by the interesed company. If it takes the second alternative, the financial intermediary will send the project format to the Center.
     
  • The Center, 15 days after receiving the project, will emit a preliminary concept about it, after a quick assessment. A positive concept does not mean a credit approval, and the incentive grant. It is just a initial filter to avoid companies to go further if the project is not viable or if does not fulfil the general requirements. En the first step, based on the information given by the company, at least 31% environmental reduction is required, which means that it will be a potential beneficiary or the reimbursement.
     
  • In case of a positive preliminary concept made by the CNPMLTA, it will send a communication to the financial intermediary (chosen by the interested company)
     
  • The Financial Intermediary will study the project and to the company from a financial point of view, and will emit a concept on the potential eligibility of the client as credit subject. Equally, this concept does not compromise the Financial Intermediary in the final approval of the Credit.
     
  • If it obtains the positive concept of both the CNPMLTA and the Financial Intermediary, the CNPMLTA will elaborate a technical and economic offer to perform the Detailed Evaluation of the Project, and the necessary laboratory measurements before and after the implementation of the project.
     
  • Finally, the interested company evaluates and agrees or rejects this offer.

 

Phase of Evaluation
Once the preliminary positive concept from CNPMLTA and the financial Intermediary, and the approval by the company about the offer from the CNPMLTA to perform the Detailed Evaluation and the measurement of the indicators are ready, these activities will follow:

  • Detailed evaluation by the CNPMLTA: Review of relevant environmental aspects according to procedures established in the ISO 14001, evaluation of the proposed technology, calculations of the environmental impact of the main indicator and others affected, and economic evaluation of the project. The results of this evaluation can be negative, in spite of the preliminary concept was positive. In such case, the respective adjustments will be requested to the company, and / or the project will be rejected. In positive case, the CNPMLTA informs to the Financial Intermediary in order that it can proceed with the Credit study.
     
  • Study of the Credit by the Financial Intermediary: Analysis of definitive credit, constitution of guarantees, elaboration of contracts, and disbursements as agreed with the company

 

Phase of Implementation

  • Once the credit contract is signed between the company and the Financial Intermediary, but before beginning the implementation of the project, the real measurements of indicators is realized by the CNPMLTA: Measurements with equipments to the main indicator and others that can be potentially affected before implementation (measurements ex-ante).
     
  • Then, the company proceeds to the implementation of the project
     
  • When the implementation is finished, the CNPMLTA performs an economic evaluation to assure that the money from the credit was correctly invested in the project. It informs to the Financial Intermediary in order to take the appropiate measurements.
     
  • In the next 3 to 6 months following the date of implementation of the project, the CNPMLTA performs again the measurement of the indicators (ex-post). This period is established to guarantee that results are stable.
     
  • With the measurements, ex--ante and ex--post, the CNPMLTA defines the recommendation of reimbursements to SECO.
     
  • SECO arranges the transfer of the reimbursement to the financial intermediary, as prepayment to balance.

 

The remain of credit conditions agreed between the company and the Financial Intermediary will operate normally since the beginning of the credit up to its conclusion.