$25m for energy efficiency projects in Ukraine

The EBRD European Bank is providing a loan facility of $25 million to Bank Forum of Ukraine. Potential clients of the bank will be local private sector companies, which should be able to receive sub-loans of up to $5 million to finance their energy efficiency and renewable energy projects.  Forum is the third Ukrainian bank to join a €100 million energy efficiency framework, approved by the Bank’s board in October 2006. Its main purpose is to tackle Ukraine’s energy intensity, which is over three times that of the average for the European Union.

It is expected that private sector companies, which will participate in the programme, will reduce their energy consumption and expenses; something that is particularly important in the context of rising energy prices in Ukraine.

The impact will help businesses remain competitive and reduce their emissions of greenhouse gases and in aggregate will help mitigate the effects of climate change.

There are two important technical assistance components, which support the framework. Project consultants, funded by the Swedish government, are responsible for project screening, marketing and an information campaign.

At the same time energy efficiency experts, funded by the Austrian government, assist potential sub-borrowers to identify specific energy efficiency measures, prepare rational energy utilisation plans and assist in preparing loan applications

The European Bank for Reconstruction and Development is the biggest financial investor in Ukraine. As of January 2008 it had committed over €3.2 billion through more than 158 projects.

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