1. How to motivate private
investment to retrofit the
existing housing stock
Mirja Adler
KredEx
12 September 2011

2. Who is private investor for
housing stock in Estonia?
• Legal body:
– Housing association
– Housing cooperative
• Community of apartment owners
– no legal body
• In all cases all apartment owners (private
persons) are responsible for decisions and
payments

3. To motivate private investors
the purpose has to be set, is it
• Complete renovation of the buildings
• Healthy indoor climate
• Energy efficiency
• Better living environment
Or the combination of all of them - yes

4. Key for motivation: complex
approach

5. Technical studies by Tallinn
University of Technology
Studies for 4 different building types,
including social studies about residents
attitude and expectations
• Brick
• Concrete large panel
• Wooden apartment buildings
• Newly constructed buildings

6. Estonia BPP - Paldiski 171
• Paldiski mnt 171 • Supervisory of works 7.669 €
– built in 1977 • Design 5.958 €
– typical block of • Reconstruction 389.408 €:
flats • roof – 52.325 €
– 5 storey • windows – 46.664.€
• facade – 119.566 €
– 60 apartments
• balconies – 107.929 €
– 3.144 m²
• heating system – 51.643 €
• heating metering system – 11.279 €
• Total costs per square meter
128 €
• Result: 58% energy saving

7. Financial measures
• Grants
– From state
– From municipalities
• Low interest rate loan
• Beneficiary can
combine the
measures

8. Grants and guarantee
• State grant from KredEx for:
– energy audit – 50%, max 700 €
– technical inspection – 50%, max 700 €
– building design documents - 50%, max 4 000 €
• Reconstruction grant from GIS: 15, 25 or 35%
depending on the level of refurbishment
– Grants from municipalities, for example:
Tallinn City 10% for renovation
• Credit guarantee from KredEx – if needed

9. Low interest rate loan -
revolving fund scheme

10. Results so far
Loan Refurbishment grant
• Start 24.06.2009 • Start 30.09.2010
• By 31.08.2011: • By 31.08.2011:
• 218 applications/buildings
• 308 buildings
– 5,5 mln €
• Apartments 11 004 • 183 pos decisions
• Ca 730 600 m² – 4,9 mln €
– 15% 1,8 mln €
• Total 26,8 mln €
– 25% 2 mln €
• Average 88 500 € – 35% 1,1 mln €
• Saving 33,4% • Ca 452 000 m²
• Average 26 600 €

11. Steps for end-beneficiary

12. Information to market participants
• Press-conference in public media
• Infodays/seminars/workshops - to end
beneficiaries, builders, energy auditors, project
designers, local municipalities
• Advertisements in newspapers/magazines
• Internet (website, banners,
news, articles)
• Direct mails
• Leaflets/booklets
• Cooperation with banks

13. 10 campaigns since 2006

15. Conclusions
• To motivate private investors the all-round
approach is needed:
– Legal framework
– Specialist and companies available
– Arguments and support for decision making process
(studies, BPP)
– Financial support schemes – loans, grants
– Programs for awareness raising
– Campaigns to inform residents about possibilities

16. Contact:
KredEx
Mirja Adler
Hobujaama 4 Tel: +372 6 674 100
10151 Tallinn, Estonia Fax: +372 6 674 101
E-mail: mirja.adler@kredex.ee
www.kredex.ee