KUALA LUMPUR, June 9 (Bernama) -- The Ministry of Energy, Green Technology and Water hopes green financing, through the Green Technology Financing Scheme (GTFS), will play its role in enhancing the application and development of green technology for green projects and products.

Its secretary-general Datuk Loo Took Gee said the GTFS was introduced on Jan 26 last year with the objective of attracting private sector participation in green projects and product technology entrepreneurship.

The Malaysian Green Technology Corporation (GreenTech Malaysia) has been entrusted to manage the implementation of the GTFS,

Loo said, in her keynote address at the National Seminar on Advocating Green Financing, here Thursday.

Her speech was read by Mothi Sk. Kothandabhany, Under Secretary, Green Technology Division of the Ministry.

The seminar was organised by the Centre for Energy Studies, Institute Sultan Iskandar and Universiti Teknologi Malaysia in collaboration with Global Event Malaysia.

Loo said the scheme is expected to benefit 140 companies by the end of next year.

As of May 31, 2011, she said GreenTech Malaysia had processed 102 applications, whereby 83 projects secured the Green Project Certificate.

The certificate would entitle the successful applicants to secure financial assistance from participating financial institutions.

However, of the 83 projects, only 20 had managed to secure loans from the financial institutions amounting to RM326.9 million with the bulk of it from the energy sector (11), water and wastewater sector (eight)and one from the transportation sector.

\"From the paltry figure of 20, we can conclude that the take-up rate from the financial institutions has not been encouraging,\" she said.

To improve the number of bankable projects, she said GreenTech Malaysian has now refined its processing of applications by including a Business Review Presentation.

All applicants will be given the opportunity to present their business model to a panel of interested bankers.

\"The quality of the business plan by applicants needs to be vastly improved in order to make it more attractive to bankers.

\"To potential producers and users of green technology, I urge the industry players to come forward and utilise this financial incentive, as it is envisaged that the growth of green technology will be the salutary driver of economic growth of nation,\" Loo added.

She said incentives in the form of a soft loan with a two per cent interest subsidy, is provided by the participating financial institutions, with 60 per cent of the disbursed loan guaranteed by the government up to a total disbursed sum of RM1.5 billion.

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