The European Bank for Reconstruction and Development (EBRD) could provide a senior loan of up to EUR 25 million to the communal company Dnipro Municipal Energy Servicing Company (Dniprovska Municipalna Energoservisna Kompanya, the city of Dnipro) for energy efficiency investments in 98 public buildings, including 67 kindergartens, 27 schools and 4 outpatient clinics.
“The investments are expected to result in strong improvement of buildings’ condition through renovation of facilities and meeting heating requirements, improved comfort level and reliability of services at kindergartens, schools and clinics, as well as reduction of energy and maintenance costs of the buildings and decrease of CO2 emissions,” the bank said on Tuesday.
The project is pending of the decision of the EBRD board on October 13.
According to the document, the loan maturity is up to 13 years, including up to three years grace, with 20 equal semi-annual repayments. The loan will be secured by a full municipal guarantee from the city.
The loan is expected to be co-financed by up to EUR 5.5 million investment grant from the Eastern Europe Energy Efficiency and Environment Partnership (E5P), subject to grant approval by the E5P Assembly of Contributors.
The local contribution of up to EUR 2.5 million will cover additional energy conservation measures and capital repairs.
The EBRD said that the loan will be a sub-project under the Public Sector Energy Efficiency Financing Framework (PSEEF), consisting of municipal-guaranteed loans to municipal energy management companies in Ukraine to facilitate critical improvements in energy efficiency measures in public buildings in a number of cities across Ukraine.
