This Summary of Project Information is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only.
Summary of Project Information (SPI)
Project number 24991
Project nameOTP Local Institution Energy Conservation Program
CountryHungary
SectorCommercial Banking - Risk Mgmt Facility
Department
Company nameOTP Bank Rt
Environmental categoryC
Date SPI disclosedApril 21, 2006
Projected board dateMay 25, 2006
StatusActive
Previous EventsSigned: June 20, 2006
Approved: June 6, 2006

Project sponsor and major shareholders of project company
OTP is the lead universal bank in Hungary. OTP maintains more than 400 branches in support of retail, corporate and municipal banking. OTP is a publicly traded company, majority owned by foreign and local private investors. Integral to the project is the local Energy Services Company CAMINUS, with a broad experience with municipal energy efficiency improvements. CAMINUS is privately held by management and SZA-Co Ltd., Hungary.

Total project cost and proposed IFC investment
The total project cost is projected to be up to $250 million local currency equivalent. The proposed IFC support will include an up to $125 million local currency equivalent in a Risk Sharing Facility. The project is also co-funded by a grant of $2.5 million from the World Bank Group Global Environment Facility.

IFC investment as approved by Board
136.99 million (USD)

Location of project and description of site
The proposed project is expected to support a large number to local institutions in the approximately 3,000 municipalities throughout Hungary. To date, a majority of Hungary’s municipalities have expressed interest in support from the Szemunk Fenye Program.

Description of company and purpose of project
The proposed project entails an IFC investment of up to $125 million local currency equivalent in a Risk Sharing Facility with OTP Bank Hungary (“OTP”) to support up to $250 million local currency equivalent in energy efficiency improvement loans for local institutions in Hungary. The project is also co-funded by a grant of $2.5 million from the World Bank Group Global Environment Facility. The proposed project would be implemented in the context of the Government of Hungary’s “Szemunk Fenye” Program. The Program is designed to facilitate lighting and heating renovations and improvements in state-supported local institutional schools, as well as other municipally supported facilities.

Environmental and social issues - Category C
This is a category C project and requires no further environmental or social analysis. The results of the project will be provided through monitoring the reductions in energy use and other improvements envisioned. The sponsors should be prepared to assess whether any construction activities associated with project activities comply with host country laws.

To contact the project company, please write to:
Ms. Jolan Balla CSOMOSNE
Deputy Senior Head of Department, Corporate Customer Relations and Product Development Directorate
OTP Bank,
16. Nador Street, H-1876 Budapest, Hungary