NEFCO and the Ukrainian city of Kramatorsk have signed a loan agreement aimed at reducing energy consumption at educational facilities in buildings owned by the municipality. Kramatorsk is located in South-Eastern Ukraine and the city has approximately 200,000 inhabitants.
The project will include, among other things, restoration of heat pipe insulation, reconstruction of individual heating units as well as replacement of windows and installation of energy saving fluorescent lamps at two preschools and three ordinary schools.
“Our project portfolio in Ukraine is growing rapidly, and a large number of Ukrainian municipalities are benefiting from our loan financing”, says NEFCO’s Senior Manager, Elisabet Paulig-Tönnes.
The Kramatorsk project is expected to reduce emissions of carbon and sulphur dioxide as well as nitrogen oxides and dust, and the municipality will also save around UAH 675,000 annually as a result of reduced energy consumption.
The business plan for the Kramatorsk project was jointly prepared by the Ukrainian company Fiatu LLC and USAID, and will be implemented within the framework of the latter’s “Municipal heating reform in Ukraine”.
The Kramatorsk project is being financed by the municipality itself and NEFCO’s Facility for Energy Saving Credits, a loan programme that provides small scale loans 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 municipal companies.
Under the terms of the facility, NEFCO may 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.