62705 LONG-TERM PARTNERSHIPS WITH EMERGING PLAYERS Mexico: Optima Energia’s Novel Business Model Helps Mexican Hotels Reduce Energy Costs A lot of building owners and facilities managers say they are interested in cutting their building’s energy costs. But they are not always willing to make the sometimes considerable investment required to realize savings. It’s a big problem for firms, at a time when they are scrutinizing every expenditure and ever more focused on returns on investment. It’s also a major environmental issue, since commercial buildings account for 7 percent of man-made carbon dioxide emissions worldwide, contributing to global warming. Enter Optima Energia. One of the firm’s business lines is an energy service company that provides energy efficiency solutions and the financing to carry them out. This area of the firm specializes in helping hotels in Mexico achieve energy savings with a business model that has proven effective in other countries, but is only now beginning to catch on in Mexico. Here’s how it works: Optima enters into performance-based contracts with its clients to implement an energy efficiency project. The resulting savings in energy costs generated by the project are used to pay back Optima’s capital investment. Additional savings generated are split between Optima and the client. IFC is loaning $10 million to Optima, so that the company can take on energy efficiency projects for more hotels in Mexico. The work is expected to have a broader impact as well—the success of Optima’s engagements with its hotel clients will encourage more hotels in Mexico to consider such initiatives for their facilities, as well as firms in other industries such as manufacturing and public services that have large physical plants. The effort is part of IFC’s commitment to find innovative ways to help companies reduce the effects of climate change while improving performance. The company’s track record speaks for itself. One satisfied Optima customer, the maintenance director of a Ritz Carlton Hotel in Mexico, noted the most important outcome of his hotel’s engagement with the company: “Cash savings.” (from the Optima SmartLesson) IFC Role and Additionality: $10 million loan to enable Optima Energia to undertake energy-saving projects for six hotels in Mexico, plus an option to acquire a 6 percent share in the company Reduction in energy usage, shrinking the carbon footprints of Optima Energia clients Significant energy cost savings for Optima Energia clients, contributing to bottom line improvements Building the market for energy service companies in Mexico and setting a new standard for energy efficiency in the country’s hotel sector For further information please contact: Olaf Schmidt 52-55-3098-0233 or oschmidt@ifc.org Carolyn Cain 1-202-473-8843 or ccain@ifc.org Bernard Micallef 1-202-473-1318 or bmicallef@ifc.org Printed on material that meets international environmental standards and is from sustainably managed commercial forests. ifc.org 2010