NEFCO and the city of Ivano-Frankivsk in western Ukraine have signed a loan agreement on financing an energy efficiency investment. The funds will be used to revamp the city’s street lighting system by replacing existing obsolete street lamps with low-energy LED lights.
This is expected to reduce electricity consumption by approximately 628,000 kWh per year. In economic terms, this means an annual saving of over UAH 715,000. The new lights will generate environmental benefits in terms of a reduction of over 224 tonnes annually in carbon dioxide emissions, as well as reduced emissions of nitrogen oxides, sulphur dioxide and dust.
“We have plenty of experience of similar projects elsewhere in Ukraine. For example, the cities of Myrhorod and Zhytomyr have also upgraded their street lighting systems with the help of loan financing from us,” says Chief Investment Adviser Julia Shevchuk at NEFCO’s office in Kiev.
The project 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, daycare centres, hospitals and sports facilities. The facility currently 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.