Agreements signed for energy efficiency investments in six Ukrainian cities
NEFCO has today signed six new agreements aimed at financing energy efficiency measures in the cities of Dobropillya, Slovyansk, Vugledar, Kurakhove, Kreminna and Myrnograd in eastern Ukraine. The funding is provided from the Nordic energy efficiency and humanitarian support initiative (NIU). This financing scheme is funded by the Nordic countries and the Eastern Europe Energy Efficiency and Environment Partnership (E5P), to which the European Union and Sweden are the main contributors.
“Today’s agreements will help the municipalities to roll out important projects that will bring both environmental benefits and financial savings for the cities concerned. Secondly, the investments will provide support to people who have fled the conflict in Eastern Ukraine,” said NEFCO’s Managing Director Magnus Rystedt.
The signing event took place in conjunction with a seminar on municipal energy efficiency investments in Kiev. The purpose of the seminar hosted by NEFCO is to highlight challenges and success stories from previously implemented energy efficiency projects in a range of Ukrainian municipalities. The seminar is attended by Ukrainian government officials, municipal decision-makers, foreign investors and representations as well as NEFCO’s staff and Board of Directors.
“The demand for our financing services in Ukraine is huge. We are currently administering 80 municipal energy efficiency projects in the country,” said NEFCO’s Chief Investment Adviser Julia Shevchuk.
The Nordic energy efficiency and humanitarian support initiative is administered by NEFCO. The assistance from this fund is provided primarily for the refurbishment and reconstruction of municipal buildings in the vulnerable areas of eastern and southern Ukraine. Emphasis is placed on social infrastructure, such as schools, day-care centres, hospitals and health centres.
The Nordic energy efficiency and humanitarian support initiative currently has funds to a total value of EUR 10 million. The initiative has so far allocated funding for 22 projects in Ukraine. Over 5,300 children at day-care centres and 10,700 school pupils are benefitting from this humanitarian programme. The initiative also entails environmental benefits, as reduced electricity consumption decreases emissions of carbon dioxide, as well as nitrogen and sulphur oxides.
The Eastern Europe Energy Efficiency and Environment Partnership (E5P) is a €180 million multi-donor fund managed by the EBRD and designed to promote energy efficiency investments in Ukraine and other eastern European countries. The fund was established under an initiative of the Swedish government during its presidency of the European Union (EU) in 2009. E5P complements energy efficiency and environmental loans provided by financial institutions including the European Bank for Reconstruction and Development, the European Investment Bank, KfW, NEFCO and the World Bank Group. Contributors to E5P are the EU and the US, as well as Denmark, Estonia, Finland, Germany, Iceland, Ireland, Latvia, Lithuania, Norway, Poland, Sweden and Ukraine.