Boost for municipal energy efficiency projects in Ukraine

10.01.2014

NEFCO has signed five new loan agreements with Ukrainian municipalities aimed at promoting energy efficiency in the cities in question. The agreements will pave the way for a wide range of energy efficiency measures in municipally owned buildings. The projects concern the cities of Dolyna, Boryspil, Lutsk, Chernihiv and Baranivka.

“We are currently experiencing an unforeseen flow of project proposals for municipal energy efficiency measures in Ukraine. This clearly shows that NEFCO has managed to position itself in the Ukrainian financial market and that the municipalities are now showing an increased interest in investing in energy efficiency projects,” says Senior Manager Elisabet Paulig-Tönnes at NEFCO.

The project measures include the installation of individual heating points, replacement of windows, insulation of pipes in the heating systems, replacement of radiators and the modernisation of lighting systems in municipally owned buildings, mainly schools and day-care centres.

The projects will generate environmental benefits in terms of reduced emissions of carbon dioxide, nitrogen oxides, sulphur dioxide and dust as a result of decreased consumption of gas and oil. The carbon dioxide emissions are expected to decrease by approximately 1,100 tonnes annually as a result of the project measures at hand.

All five projects will be financed by NEFCO’s Facility for Energy Saving Credits which is a loan programme that provides funds to finance energy saving measures in municipally owned buildings such as schools, day-care centres, hospitals and sports facilities. At the moment, the facility only provides loans to Russian and Ukrainian local authorities and publicly owned companies.

Under the terms of the facility, NEFCO can finance, in local currency, up to 90 per cent or EUR 400,000 of the investment costs of any project being financed under the credit programme.

The Ukrainian parliament ratified NEFCO’s framework agreement in 2010. NEFCO currently has 139 projects in the Ukrainian loan portfolio and has, so far, approved 15 energy efficiency loans for municipalities.

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