On June 12, the European Bank for Reconstruction and Development (EBRD) plans to approve a loan of up to EUR 15 million for Kharkiv to restore heat supply following critical damage in February 2026 to the city’s largest combined heat and power plant, CHPP-5.
According to the bank’s materials, the financing is planned to be used to purchase up to 22 small and medium-sized modular gas-fired boiler houses with cogeneration units, as well as five small cogeneration units for existing boiler houses.
The loan is part of a broader EUR32 million package, which also includes an investment grant from the European Union (EU) of up to EUR17 million.
Given the war risks, the EBRD loan is also expected to receive a partial EU guarantee to cover first-loss risk.
According to the EBRD’s estimates, the project will reduce greenhouse gas emissions by 19,100 metric tons of CO2 equivalent per year.
It is noted that the project is expected to restore access to basic heat supply services for a broad and vulnerable group of consumers, including 99,300 residents—more than 16,500 of whom are internally displaced persons (IDPs)—as well as 23 educational institutions and seven medical facilities.
According to the EBRD, as of early 2026, 212,000 IDPs were officially registered in Kharkiv.
The project is being implemented under the Resilience and Livelihoods Facility (RLF) program.
EBRD, EU, heat supply, KHARKIV, TPP-5
