Short description of the overall project

Establishing a EUR 100 million Ukraine Public Sector Energy Efficiency Framework providing loans to municipal energy management companies in Ukraine to finance energy saving improvements in public buildings and street lighting infrastructure. For each project under the Framework the proposed investment will enable the municipalities to finance energy efficiency measures in public buildings and street lighting through energy performance contracts (EnPC) implemented by private construction, engineering or energy service companies (ESCOs) selected by competitive tender. The investments are expected to significantly improve energy efficiency in public buildings and thereby lead to energy savings and reduced greenhouse gas emissions as well as improved comfort levels at kindergartens, schools and hospitals included into sub-projects under the framework.

Short description of activities financed by  the donation

Feasibility study covering technical, environmental and social due diligence of the municipal energy management company and the city. The average cost of an individual assignment is expected to be up to EUR 200,000. The required feasibility studies are covered by a Framework TC programme (the Ukraine Public Sector Energy Efficiency Framework TC) Funding for the Framework is provided by the Government of Sweden (as outlined below).

The Ukraine Public Sector Energy Efficiency Framework TC programme for supporting participating cities to prepare and tender EnPCs, develop guidelines and the required ESCO legislation, including market testing. This TC (on-going) aims to support the PIUs established in each City participating in the Framework. The estimated total cost of this TC Framework is EUR 3,500,000. Funding for the first phase of this TC assignment is partly provided by the Government of Sweden (EUR 1.25 million) and partly provided by the EBRD Ukraine Multidonor Account (EUR 0.35 mln). The remaining amount of EUR 1.9 million will be proposed to be financed by an international donor or the EBRD's Shareholder Special Fund ("SSF").

 Regulatory support to assist with the procurement of energy service contracts via the national electronic public procurement (eProcurement) system by piloting an evaluation tool for energy efficiency indicators for public energy efficiency projects (building upon the completed Regulatory Support TC "Energy performance contracting: Creating an enabling legal framework for ESCO projects in Ukraine"). The evaluation tool will be incorporated into the eProcurement system and integrated into electronic public tenders design and evaluation mechanisms, as mandatory measure (according to the national legislation) for selected public tenders conducted electronically on the designated eProcurement platform. The estimated cost of this TC assignment is EUR 15,000, agreed to be financed by the Government of Sweden.