The EIB gives Ukraine a €300 million loan for energy efficiency

ЕИБ дает Украине €300 миллионов кредита на энергоэффективность

The European investment Bank (EIB) and the Ministry of development of communities and territories signed an agreement on cooperation in the sphere of Advisory services to support preparation of the Project for energy efficiency in public buildings in Ukraine.

The agreement was signed on 2 June, the eve of the meeting-donor trust Fund for the Eastern partnership technical assistance (EPTATF), is reported in the press service minrehionu.

According to the Ministry, the Fund will provide 150 million euros to support the implementation of this agreement.

It is expected that the overall Project energy efficiency in public buildings in Ukraine will be backed by a loan of 300 million euros from the EIB and a grant of contributions from the Fund Eastern European partnership for energy efficiency and the environment (Е5Р Fund) and the EU in addition to consulting services. The project will solve the main problems in the sector, in particular – the lack of long-term capital for small and medium municipalities of Ukraine. And also the problem of lack of support throughout the subproject cycle for energy efficiency, including: project evaluation, logistics, contract administration, supervision and monitoring of construction, commissioning, testing and acceptance of the work performed. A significant positive economic impact can be achieved through the expansion of investment and considerable technical support, said the Ministry of regional development.

The project will improve the energy efficiency of 1,000 buildings, mainly kindergartens, hospitals and schools. It will help to prevent the emissions of more than 1 million tons of carbon dioxide (CO2). Results of the project will benefit 2.5 million residents of Ukraine. By including measures to combat COVID-19 the project will improve medium-term sustainability of public buildings, particularly hospitals, to pandemic.

First Deputy Minister of development of communities and territories of Ukraine Vasyl Lozynsky said that the Ministry of regional development and the EIB have signed an agreement under which training will be conducted for the provision of low-interest loan of 300 million Euro with a long term maturity for large-scale implementation of thermal modernization of buildings of the public sector. In particular, the modernization will be carried out by installing modern equipment for energy efficiency, meters and control systems, modernization of heating systems, ventilation and lighting.

We will remind, the EIB is the Bank of the European Union and Institute long-term lending. It is also the only Bank owned by the member States of the EU and which represents their interests. The EIB cooperates closely with the EU institutions to implement its policies.

As the largest multilateral borrower and lender, the EIB provides Finance and provides expertise for reliable and sustainable investment projects which contribute to achieving the political objectives of the EU. More than 90% of EIB activities take place in Europe. However, the Bank also helps in the implementation of foreign and development policy of the European Union.

Trust Fund for the Eastern partnership technical assistance (The Eastern Partnership Technical Assistance Trust Fund (EPTATF) is a multitasking and diversified financing tool for special technical support in the Eastern partnership countries. It provides these countries the best practices and resources to improve performance during preparation and implementation of projects. It simplifies the mobilization of funds for investments supported by the EIB. EPTATF provides high value added because better project preparation increases their attractiveness to investors and improve the effect of investments on development in beneficiary countries.

The Fund Eastern European partnership for energy efficiency and the environment (Е5Р) – multi-donor Fund with a volume of EUR 200 million to encourage investment in municipal projects to improve energy efficiency and environmental protection in the countries of the Eastern partnership. The establishment of E5P was initiated by Sweden during the EU presidency in 2009. It combines financial contributions of the EU and the group of 21 countries. Next, these contributions are used to attract national funds and loans from international financial institutions.