The European Bank for Reconstruction and Development (EBRD) would provide a EUR 6 million loan to municipal enterprise Kremenchuk Municipal Energy Servicing Company for energy saving projects in 38 kindergartens, 23 schools and five hospitals.
EBRD Senior Adviser Anton Usov told that the decision was made by the EBRD board on December 14 as part of the approved Ukraine Public Sector Energy Efficiency Framework (PSEEF).
According to the documents on the bank’s website, the EBRD finance summary for the PSEEF is EUR 100 million. However, each sub-project under the framework will be separately approved by the board, Usov said. Municipal energy management companies in Ukraine will finance energy saving improvements in public buildings and street lighting infrastructure.
A feasibility study for the sub-projects will cover technical, environmental and social due diligence of the municipal energy management company and the city. The average cost of an individual assignment is expected to be up to EUR 200,000. Funding for the framework is provided by the government of Sweden in the pre-signing phase. The government of Sweden will also provide an additional EUR 1.25 million in the post-signing phase.
It is estimated that energy savings up to 50% can be achieved with the implementation of the project in Kremenchuk. It is envisaged that the project will lead to reductions in energy consumption of around 20,000 MWh per year and CO2 savings of around 5,300 tonnes per year.
The EBRD loan is to be complemented by a grant of up to EUR 1.5 million, proposed for co-financing from the EBRD Shareholder Special Fund (SSF), and a concessional loan of up to EUR 1.5 million from the Clean Technology Fund (the CTF). The loans will be secured by a municipal guarantee from the city. The SIDA-EBRD Ukraine Energy Efficiency and Environment Cooperation Fund (SWUK) will provide an additional technical assistance of EUR 500,000.
