EEPP Program Support Unit 
EPF Operating Manual   General Principles 
Specific guidelines for establishing the soft loan program are as follows: 
    
Establish the total amount of EPF expenditures available for the soft loan  portion of the 
Competitive Projects Program. 
    
Establish the applicant and project profiles for soft loans. 
    
Establish criteria for approving applications for soft loans. 
    
Establish priorities, and evaluation and selection criteria.  
    
Establish co financing requirements for soft loans. 
    
Establish application and processing procedures 
    
Establish method(s) of softening loans. 
Loan Guarantees 
Loan guarantees are a legally binding commitment by the Fund to pay lenders some or all of 
the loan principle and interest if the borrower is unable to pay. Although no up front 
disbursements are incurred by the EPF, issuance of loan guarantees should be subject to the 
same financial analysis as applications for interest rate subsidies or soft loans.  
As a general rule, the total amount of loan guarantees should not exceed 10% of the EPF 
expense budget at any point in time.  Loan guarantees will be issued to secure loans extended 
to project applicants by banks cooperating with the EPF.   
Tender Method 
The objective of the tender application method is to assist in achieving national 
environmental objectives and policies by providing financial support for implementing 
priority environmental projects, for which the Fund has not received applications from other 
organizations through the application method.   Accordingly, the EEAA will take the 
initiative to prepare for such projects.   Thus, the tender method pertains to the identification 
of environmental projects that need to implemented to contribute towards achieving national 
environmental policies and objectives.  Preparation of the project concept document will be 
carried out by EEAA and upon approval, EEAA will tender project execution and operation 
according to general tender procedures.   
Specific guidelines for establishing the tender program are as follows: 
    
Establish the total amount of EPF expenditures available for the tender program 
    
Establish the applicant and project profiles for the tender method 
    
Establish criteria for approving applications by the tender method.    
    
Establish priorities, and evaluation and selection criteria.  
    
Establish co financing requirements for projects by the tender method 
    
Establish application and processing procedures 
    
Establish terms and conditions for disbursing EPF funds for tender projects 
EEPP PSU 
18 
INTERNATIONAL RESOURCES GROUP






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