Ukrainian school children will benefit from NEFCO's investments. Photo: Patrik Rastenberger

NEFCO has signed new loan agreements with six Ukrainian municipalities in order to promote energy efficiency investments in the cities of Sumy, Chernivtsi, Cherkasy, Berdychiv, Kolomyia and Komsomolsk. The upcoming projects will pave the way for investments in the installation of new LED street lights as well as a number of measures aimed at refurbishing public buildings such as pre-schools and schools. Among other things, new ventilation systems with heat recovery will be installed, doors and windows will be replaced, thermal insulation of pipes will be carried out and individual heat sub-stations will be established.

The cities concerned will save substantial budgetary means by reducing the heat and electricity consumption in the buildings covered by the investment programmes. For example, the replacement of incandescent street lamps with LED ones will reduce electricity consumption by some 80 per cent.

“We are really pleased about the fact that we are currently experiencing a steady flow of loan applications and project enquiries for municipal energy efficiency investments in Ukraine,” said Chief Investment Adviser Julia Shevchuk who heads NEFCO’s office in Kiev.

The projects in question 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. The facility currently only provides loans to Belarusian, 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 financed under the credit programme.

NEFCO’s project portfolio for Ukraine currently comprises over 120 projects.