Purpose

To develop a model for implementation of ESCO EPC contracts in Polish hospitals, which may be replicated in other CEE country environments. 

Main Activities

1. Prepare and negotiate the policy changes necessary to allow the NFZ or another appropriate entity to guarantee payments to hospitals sufficient to cover the annual payments to ESCOs under EPC contracts, in other words up to the amount of projected energy savings.  This represents a miniscule portion of total reimbursement payments to be made by the NFZ to a hospital therefore it is only a legal mechanism that is needed to segment these funds for ESCO EPC payments.
2. Prepare one pilot energy efficiency project at a hospital for tendering to ESCOs as test case for the national-level policy change.
3. As ESCOs are unwilling to maintain EPC financing on their balance sheets, we will negotiate and arrange for a local bank to buy the long-term receivables under a forfeiting arrangement. 
4. Disseminate the policy guidelines, ESCO tender and forfaiting arrangement documents to other countries in the CEE region with similar health care financing schemes.

Expected Impact

Due to the difficult financing arrangements for the hospital sector in Poland and most CEE countries, ESCOs and banks alike are unwilling to undertake the financing and implementation of energy efficiency projects in the health care sector.  This project endeavors to create a model to address key barriers.  Our discussions with ESCOs operating in the region lead us to believe that the proposed model would open the door to widespread ESCO activity in the hospital sector.