EIB to allocate EUR 300 mln loan for energy efficiency in Ukraine

The European Investment Bank (EIB) and Ukraine's Ministry for Communities and Territories Development have signed an agreement to raise a EUR 300 million loan to improve the energy efficiency of 1,000 public-owned buildings, including schools, cultural centers, kindergartens, and hospitals in the country.

Read alsoEIB lends EUR 10 mln to Kharkiv for trolleybusesThe agreement was signed during the 22nd EU-Ukraine Summit to help the country limit the economic impact of COVID-19 by stimulating faster economic and social growth after the pandemic, the Ukrainian Cabinet's press service said on its website on October 7.

"In its role as the EU's climate bank, the EIB will support Ukraine in implementing an ambitious energy efficiency program. It will extend the operational life of key social, healthcare, administrative, and cultural buildings by at least 20 years and reduce CO2 emissions by 1,250,000 tonnes," the press service wrote, referring to the EIB's press release.

The loan will benefit a large number of small and medium-sized municipalities in Ukraine that have lacked the support and sustainable funding to carry out the necessary renovations.

"The loan will enable the installation of modern equipment in buildings, such as meters and energy consumption control systems, the modernization of heating, ventilation and lighting systems, and upgrades to exterior surfaces (facades, roofs, slab insulation, basement ceilings, replacement of windows and doors). The Ukrainian healthcare sector will directly benefit from upgrades, with new cooling systems and the integration of renewable energy sources and other COVID-19 response measures," the press service said.

EIB Vice-President Teresa Czerwińska said: "As the EU's climate bank, we are very pleased to be supporting the increased energy efficiency of public buildings and Ukraine's greater energy independence. Projects like this one improve quality of life, protect the environment and significantly reduce building operating costs, making Ukraine an even better place to live and do business."

Ukraine's "warm loans" program

The so-called "warm" loans program has proven its effectiveness for six years of its implementation nationwide: about 850,000 Ukrainian citizens have invested over UAH 8.6 billion (US$303.2 million) in energy efficiency efforts and are already saving on utilities, while the state has provided them with UAH 3.2 billion (US$112.8 million) in co-financing.

The Cabinet of Ministers has extended the program for another year, allocating UAH 150 million for its implementation in the draft national budget for 2021.