RM2.0 BILLION FUND FOR GREEN TECHNOLOGY FINANCING SCHEME 2.0

In line with the announcement made during 2019 Budget, MOF via a letter dated March 6th, 2019, has approved to reinstate GTFS 2.0, which is an extension to the earlier Scheme with a new financing/funding earmarked up to RM2.0 billion. The Scheme will be implemented for a period between January 2019 to 31st December 2020 to support six (6) main sectors namely Energy, Waste, Water, Building, Transport and Manufacturing. GTFS 2.0 will continue to offer the 2% p.a. rebate on interest/profit charged by the PFI’s (only limited up to the first 7 years as compared to the previous scheme which was up to maximum of 15 years). Concurrently, MOF had also decided to remove the 60% guarantee on the green technology cost financed by PFIs as was previously offered under the Scheme. The financing limit for Producer and User category is up to a maximum of RM100 million and RM50 million respectively (increased from RM10 million under the previous Scheme).

Apart from the Producer and User categories, a new category i.e. the Energy Services Company (ESCOs) are eligible to apply under the Scheme, that is to finance investment or assets related to energy efficient project and/or energy performance contracting. Each of the ESCOs can enjoy a financing limit of up to RM25 million for a period of up to 5 years.