What makes a Green Business ? Eligibility Criteria for Green

Technology Financing Scheme

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AHMAD ZAIRIN ISMAIL

Malaysian Green Technology Corporation

19 April 2011

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Human Activity-Sustainable way

Disposal

-Inert waste

-Green disposal

-Reduce harmful

chemicals effect

Non-recyclable

-Solid (Ash,

-Gas (Cox,Sox,NOx)

-Liquid

Resources:

-Material

-Energy

-Water

Resources type:

-Local/non-local

-Green/non-green

-Renewable/non Renewable

-Green/non-Green packaging

Recycle/Reuse-able

-Solid (Paper, steel,

plastic, glass, fertilizer

etc…)

-Gas (Hot gas)

-Liquid (Grey water)

Activity

-Transportation

-Manufacturing

-Power generation

-Land development

(housing, bussiness, etc)

-Agriculture

-Others

Approach

-Protection of environment

-Resource consumption

optimization

-Maintain/ Improve

Comfort/ Safety/ Healthy

-Bioligical pest control

-Organic agriculture

Waste/byproduct:

- Solid (Industrial, Municipal,

Agriculture, etc)

- Gas

(GHG: water vapour, CO2,

methane, NO, O3, CFC,

Others: hot gas, CO, SOx,NOx

etc)

- Liquid (Sanitary, industrial, etc)

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DEFINITION

The development and application of products,

equipment and systems used to conserve the

natural environment and resources, which

minimizes and reduces the negative impact of

human activities.

CRITERIA

• Minimizes degradation to the environment;

• Has zero or low green house gas (GHG) emission;

• Safe for use and promotes healthy and improved

environment for all forms of life;

• Conserves the use of energy and natural resources; and

• Promotes the use of renewable resources

Definition of Green Technology

4 Pillars of the National Green Technology Policy

• Energy

– Seek to attain energy independence and promote

efficient utilization

• Environment

– Conserve and minimize the impact on the environment

• Economy

– Enhance the national economic development through

the use of technology

• Social

– Improve the quality of life for all

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To promote green technology, the Government will establish a fund amounting

to RM 1.5 billion. This fund will provide soft loan to companies that supplies

and utilize green technology. For suppliers, the maximum financing is RM 50

million and for companies RM 10 million. The Government will bear 2% of the

total interest rate. In addition, the government will provide a guarantee of 60%

on the financing amount, with the remaining 40% by the banking institutions.

Loan applications can be made through the National Green Technology

Centre. This scheme will commence on 1 January 2010 and is expected to

benefit 140 companies

Fund:

RM 1.5 billion

User of GT:

Max. financing is

RM 10 million

Producer of GT:

Max. financing is

RM 50 million

Target:

140 companies

Effective Date:

1 Jan 2010

Government support:

Subsidy interest/profit - 2% p.a.

Government Guarantee- 60%

Budget Speech Prime Minister on 23 Oct 2009

FEATURES PRODUCER OF

GREEN TECHNOLOGY

USER OF

GREEN TECHNOLOGY

Financing size Maximum: RM50 million

per company

Maximum: RM10 million

per company

Financing tenure Up to 15 years Up to 10 years

Purpose of

financing

To finance investments in

production of green

technologies that meet

the Scheme objective

To finance investments in

utilisation of green

technologies that meet the

Scheme objective

Eligibility criteria Legally registered

Malaysian -owned

companies (at least 51%) in all economic sectors

Legally registered

Malaysian -owned

companies (at least 70%) in all economic sectors

Participating

financial institutions (PFIs)

All commercial and Islamic Banks

Development financial institutions (Bank Pembangunan, SME Bank, Agrobank, Bank Rakyat, EXIM & Bank and Bank Simpanan Nasional )

Key Features

Government incentive

Government bear 2% interest rate/profitGovernment guarantee – 60% of financing approved

amount

Guarantee fee 0.5% p.a. from the total guaranteed amount

Interest/financing rates

Determined by participating financial institutions

Source of funds Participating financial institutions

Implementation agency

(1) Malaysian Green Technology Corporation (MGTC)(2) Credit Guarantee Corporation Malaysia Bhd. (CGC)

Application

method

Companies are required to submit project proposal/s

for technical evaluation to MGTC. Upon passing the technical evaluation, companies may proceed to

submit application for financing to any participating

financial institution.

Application dates

Applications are open from 1 January 2010 for a period of 3 years or upon approval of financing up to RM1.5 billion, whichever is earlier.

Key Features

(1) SEKTOR TENAGA- BEKALAN TENAGA

- PENGGUNAAN TENAGA

(2) SEKTOR

BANGUNAN

(3) SEKTOR AIR & PENGURUSAN SISA

(4) SEKTOR PENGANGKUTAN

SEKTOR YANG TERLIBAT

BANK TEMPATAN BANK ASING

1. AFFIN BANK BERHAD

2. ALLIANCE BANK MALAYSIA BERHAD

3. AMBANK (M) BERHAD

4. CIMB BANK BERHAD

5. EON BANK BERHAD

6. HONG LEONG BANK BERHAD

7. MALAYAN BANKING BERHAD

8. PUBLIC BANK BERHAD

9. RHB BANK BERHAD

1. BANGKOK BANK BERHAD

2. BANK OF AMERICA MALAYSIA BERHAD

3. BANK OF CHINA (MALAYSIA) BERHAD

4. BANK OF TOKYO-MITSUBISHI UFJ

(MALAYSIA) BERHAD

5. CITIBANK BERHAD

6. DEUTSCHE BANK (MALAYSIA) BERHAD

7. HSBC BANK MALAYSIA BERHAD

8. J.P. MORGAN CHASE BANK BERHAD

9. OCBC BANK (MALAYSIA) BERHAD

10. STANDARD CHARTERED BANK MALAYSIA

BERHAD

11. THE BANK OF NOVA SCOTIA BERHAD

12. THE ROYAL BANK OF SCOTLAND BERHAD

13. UNITED OVERSEAS BANK (MALAYSIA)

BERHAD

SENARAI BANK-BANK KOMERSIAL

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Process Flow

A. APPLICATION PROCESS1. Project Certification (Technical)

2. Financing Application

3. Guarantee Approval

B. FINANCING EXECUTION 4. Agreement and Documentation

5. Fund Disbursement/Repayment

C. PROJECT OUTCOME6. Project Monitoring and Verification

7. Project Impact

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GTFS Application - Online

CONTENTS

A. Project Participants

B. Project Description

C. Project Financing

D. Project Monitoring and Verification

E. Submission of Supporting Documents

and Attachment

F. Checklist

Application method: Online E-Application

Website: www.gtfs.my

Supporting document to GreenTech in hard copy

Form GTFS2010

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Procedure and Guideline GTFS

CONTENTS

1.0 Background

2.0 Green Technology Financing Scheme (GTFS)

3.0 Application Guideline

3.1 Who can apply for the GTFS?

3.2 Guideline to fill in application form

3.3 What technology can be funded?

3.4 GTFS technical evaluation Criteria

3.5 List of Green Technology (GT) Products / Equipment / Systems &

Criteria

3.5.1. General Criteria

3.5.2. Project Eligibility Criteria for Energy Sector

3.5.3. Project Eligibility Criteria for Building and Township Sector

3.5.4 Project Eligibility Criteria for Water & Waste Management

Sector

3.5.5. Project Eligibility Criteria for Transport Sector

at www.gtfs.my

HOTLINE 1-800-88-4837

e-mail gtfs@ptm.org.my

(1) MEMINIMUMKAN DEGRASI KUALITI PERSEKITARAN;

(2) MEMPUNYAI PEMBEBASAN GAS RUMAH HIJAU (GHG) YANG RENDAH ATAU SIFAR;

(3) SELAMAT UNTUK DIGUNAKAN DAN MENYEDIAKAN PERSEKITARAN SIHAT DAN LEBIH BAIK UNTUK SEMUA HIDUPAN

(4) MENJIMATKAN TENAGA DAN SUMBER ASLI; DAN

(5) MENGGALAKKAN SUMBER-SUMBER YANG BOLEH DIPERBAHARU

KRITERIA PROJEK TEKNOLOGI

HIJAU

PRODUK, PERALATAN ATAU SISTEM TEKNOLOGI HIJAU HENDAKLAH MEMENUHI SALAH SATU KRITERIA BERIKUT:-

APLIKASI TEKNOLOGI HIJAU DALAM PENJANAAN TENAGA DAN PENGURUSAN BEKALAN TENAGA DI SEKTOR INDUSTRI DAN KOMERSIAL

APLIKASI TEKNOLOGI HIJAU DALAM SEMUA SEKTOR PENGGUNAAN TENAGA DAN DALAM PROGRAM PENGURUSAN PERMINTAAN TENAGA

GTFS- PROJEK TENAGA

MENERIMA PAKAI TEKNOLOGI HIJAU DALAM PEMBINAAN, PENGURUSAN, PEMULIHARAAN DAN PEMUSNAHAN BANGUNAN

GTFS- PROJEK BANGUNAN

MENERIMA PAKAI TEKNOLOGI HIJAU DALAM PENGURUSAN DAN PENGGUNAAN SUMBER AIR

MENERIMA PAKAI TEKNOLOGI HIJAU DALAM RAWATAN KUMBAHAN, SISA PEPEJAL DAN KAWASAN PELUPUSAN SAMPAH

GTFS- PROJEK AIR &

PENGURUSAN SISA

MENERAPKAN ELEMEN TEKNOLOGI HIJAU DALAM PRASARANA PENGANGKUTAN DAN KENDERAAN, KHUSUSNYA BIOBAHAN API DAN PENGANGKUTAN JALAN AWAM

GTFS- PROJEK PENGANGKUTAN

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Case study – Transport sectorINFRASTRUCTURE

GREEN VEHICLE

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GTFS Project Certificate

• Project Certificate will be issued to

applicant once approval received

from GTC.

• The certificate consist:

• cert no,

• project name,

• project serial no,

• category,

• sector,

• company name (reg. no)

• GT project cost

• Expiry date (6 + 3 month)

• To apply for loan applicant have to

submit together the Certificate and

Summary Evaluation of project to PFI

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Loan Application StatusNo. Company Sector L.O (Bank) Branch L.O Value (RM) L.O Date L.G Value (RM) L.G Date Disbursement to date (RM)

1 Pesaka Technologies Sdn Bhd Energy BPMB HQ 49,500,000.00 12.1.10 49,500,000.00 12.3.10 5,315,771.76

2 Pascorp Paper I. Sdn Bhd Water&Waste RHB Jln Tun Razak,KL 42,000,000.00 31.5.10 42,000,000.00 24.8.10

3 Victory Recovery Water&Waste AmIslamic B Biz Centre,Seremban 2,000,000.00 27.5.10 2,000,000.00

4 Sydney Cake House Energy AmBank Batu Pahat,Johor 2,100,000.00 23.2.10 1,680,000.00 27.9.10

5 Nasmech Technologies Sdn Bhd Water&Waste Bank Rakyat Jln Tangsi, KL 4,435,000.00 12.7.10 4,435,000.00 26.7.10 1,650,969.34

6 Mushkin Energy CIMB KLCC 2,500,000.00 27.7.10 2,500,000.00

7 Mistral Engineering Sdn Bhd Energy AmBank K.Kinabalu 15,000,000.00 29.6.10 15,000,000.00 6.8.10 6,000,000.00

8 Green Pluslink Sdn Bhd Water&Waste

BPMB HQ

6,787,500.00 11.8.10 6,787,500.00 29.9.10

9 Daya Clarimax Sdn Bhd Water&Waste AmIslamic B Menara Dion,Jln S.

Ismail 8,000,000.00 3.9.10 8,000,000.00 30.9.10

10 Maribumi Starchtech Energy CIMB Menara Choy Fook

On,PJ 7,500,000.00 30.8.10

11 QL Plantation Sdn Bhd EnergyHong Leong

Bank

Jln Lembaga, Tawau

Sabah 10,000,000.00 11R27.10.10 10,000,000.00

12 See Hau Global Sdn Bhd Water&Waste AmBank Menara Dion,Jln S.

Ismail 3,500,000.00 27.10.10 3,500,000.00

13 QL Tawau Palm Pellet Sdn Bhd EnergyHong Leong

Bank

Jln Lembaga, Tawau

Sabah 9,200,000.00 11.10.10

14 PZ Bio Energy Sdn Bhd Transportation Maybank JB Biz Centre 1,950,000.00 9.12.10

Total164,472,500.00 145,402,500.00 12,966,741.10

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Case study – Building sector

Key data

• Gross floor area; 4,000m2

• Energy Index: 35 kWh/m2/year (excl PV)

• Energy Index: 0kWh/m2/year (incl PV)

• Additional construction cost; 21% (excl PV)

• Additional construction cost: 45% (incl PV)

EE Features

• Daylight (almost 100%)

• EE lighting + task lights

• EE office equipment

• EE server room

• Floor slab cooling

• EE ventilation

• Controls & sensors

• Double glazing

• Insulation

Green Energy Office Building

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Case Study- Energy Sector

Title of Project: Biomass Thermal Oil Heater

Location of Project: Gemas, Negeri Sembilan

Project Brief: Replacement of thermal oil

heater from oil fired to wood

waste

Project Benefit: Saving fuel cost

Total Project Cost: RM 2.16 million

Annual Savings: RM 0.72 million p.a.

Payback Period: 3 years

Total Financing from EEPLS: RM 2.00 million

Duration of Financing: 6 Years (Aug 2006 – July 2011)

including 1 Year for Grace

Period

Monthly Repayment: RM 33,333.33

Date of First Repayment: 01-August-2006

Accumulated Repayment as at

30-Sep-09:

RM 1,219,924.02 (61%)

MIEEIP Demo Projects under EE Projects Lending Scheme (EEPLS)

Project between MENSILIN HOLDINGS/ HEVEABOARD SDN. BHD.

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Projects FPI Sdn Bhd

LocationFelda Serting Hilir, Serting,

Negeri Sembilan

CapacityPlan Selling to grid :

1.5 MW

Project Cost RM 8 million – 10 million

FuelEffluent waste from palm oil

mill (POME)

Technology

Utilize digester tank

(thermophilic conditions) to

tap biogas before directed into

biogas engine (German)

EPCC CST Engineering

Progress 100%

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Case study- Water & Waste sector

Felda Palm Industries Sdn Bhd – biogas plant

LAMAN WEB DIREKTORI HIJAU (GREEN DIRECTORY)

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Thank You