“LATVIAN BALTIC ENERGY EFFICIENCY FACILITY” or LABEEF is a fund created by investment control enterprise Funding for Future B.V. (F3), with aim to facilitate long-term investments necessary for multifamily building and public building renovation projects.
Making sure that the ESCOs have done their construction work properly and reached the certain energy savings stated in the Energy Performance Contracting (EPC), the fund purchases future revenue so that ESCOs could work further on next comprehensive renovation projects of buildings. The Fund operates in accordance with the guidelines set that helps LABEEF to analyze the investment opportunities for particular ESCOs.
In order to receive LABEEF funding all renovated buildings must meet the highest energy efficiency standards, at the same time providing to owners safety, health and comfort guarantees for 20 years. LABEEF fund is financed by private investors and the European Bank for Reconstruction and Development (EBRD).
LABEEF funding guidelines and online platform ensure public and transparent financing process, where all party interests are taken into account.According to LABEEF guidelines, the financing process is divided into 3 stages:
LABEEF finances projects that are accomplished according to LABEEF standards and using LABEEF standard documentation, incl. EPC, EPC + and EPC ++ Energy Performance Contracting (EPC) templates. Before the start of the renovation project, the above-mentioned requirements must be taken into consideration by the ESCO
When ESCO is ready to implement a multifamily-building renovation project in accordance with LABEEF requirements and has agreed with the commercial bank on project funding for the first 2-3 years, LABEEF will sign its commitment to purchase ESCO's future revenue that will be generated during the project
After the building has been renovated and one heating season passed, the LABEEF performs a construction work audit. Then LABEEF will verify whether the objectives that were set by the EPC have been achieved by ESCO. If the objectives have been reached, LABEEF will buy the future revenue of the ESCO.