The European Bank for Reconstruction and Development (EBRD) will issue a EUR9 million loan as part of the Public Sector Energy Efficiency Financing Framework (PSEEF) program to Kremenchuk (Poltava region) with the population of approximately 220,000 people.
According to a press release of the EBRD, the funds will be provided to the city’s municipal enterprise Kremenchuk Municipal Energy Service Company and will help achieve annual energy savings of 19.5 GWh (or EUR1.3 million in monetary terms) in 66 buildings across the city.
“The EBRD is providing a financing package of EUR9 million, which will consist of the bank’s long-term loan of up to EUR6 million, a EUR1.5 million concessional loan from the Clean Technology Fund (CTF) and a EUR1.5 million grant from the EBRD Shareholder Special Fund (SSF),” the document reads.
According to the report, the municipality of Kremenchuk was the first in Ukraine to receive funds under the PSEEF program approved by the EBRD on December 13, 2017. In general, the program consists of EUR100 million of EBRD financing and EUR15 million of the concessional co-financing from the Clean Technology Fund.
The report says the city has over 120 public buildings, which consume twice as much energy compared to similar buildings in central Europe. The majority of them require thermal insulations, modernization of the energy distribution system, installation of individual heating substations, windows replacement and many other similar measures.
“Total investment needs of public buildings in Ukraine are estimated to be up to EUR5 billion. They can potentially offer a significant energy cost savings of up to 60%. The project will also be a good incentive for the construction industry and the employment in the region,” EBRD Director for Ukraine Sevki Acuner said.