Project summary document

Project description
and objectives:

The proposed project is EUR 100 million framework facility under which the EBRD would extend credit lines to Participating Banks (PB) for on-lending to private sector companies for industrial energy efficiency and renewable energy projects. Discussions are currently taking place with potential participating banks.

Sub-projects:

• UKEEP - State Export Import Bank of Ukraine (UkrExim)
• UKEEP - Kreditprombank
• UKEEP - Forum Bank

Transition impact:

The project will help to overcome market imperfections that hold back the smooth functioning of the energy conservation market in Ukraine. It will have positive demonstration effects particularly with respect to utilising financial intermediaries for investments resulting in rational energy utilisation. The proposed project would result in:

i) demonstration of the benefits of rational energy usage

ii) building expertise (among the PBs and sub-borrowers)

iii) increased financial intermediation targeted at rational energy utilisation which will also improve operating efficiency.

The client:

The clients will be Ukrainian PBs which will on-lend the funds to sub-borrowers planning to undertake energy efficiency investments and renewable energy projects in the private sector.

EBRD finance:

Senior loans of up to an aggregate of EUR 100 million to be allocated to PBs in Ukraine.

Total project cost:

EUR 100 million from EBRD.

Environmental impact:

FI screened operation. PBs will require that companies financed through this credit line comply with national requirements for environment, health and safety. This will be confirmed to the PBs by the consultant who will cover this issue as part of the preparation of each project (see Technical co-operation section below for more information). Reporting on sub-projects and annual monitoring reports will be provided by PBs.

Increased efficiency in heat generation, reduction of heat transmission losses and improved efficiency in the use of heat and energy will lead to a reduction of air pollutants (e.g., SO2; NOx; CO2; particulates) resulting from heat and electricity generation. This is a clear and quantifiable environmental benefit on which the PBs will provide details in an annual environmental report to the Bank.

Technical
cooperation:

The Austrian and Swedish Governments will provide funding for technical cooperation essential for the Project. This will include the following components the Project Consultant (“PC”):

1. The first consultant, will:

a. provide overall project coordination

b. provide initial training to PBs

c. proactively work with PBs in reviewing their client base and identify a pipeline of potential projects

d. promote the Facility through marketing campaigns

e. advise on the eligibility of the sub-projects proposed to be financed under the Facility

f. monitor the performance of the Facility and the sub-projects.

2. The second consultant will be the Energy Efficiency Expert ("EEE"), one or more consulting firms that will assist sub-borrowers in the screening and preparation of sustainable energy projects in the industrial sector. The EEEs will work with perspective sub-borrowers to:

a. identify individual opportunities through a dedicated energy audit (“EA”) comprising site visits, energy performance assessment, cost-benefit analysis of technically feasible investments

b. assess compliance of each proposed project or set of projects with applicable environmental and health and safety laws and standards

c. prepare an EA report to support the loan application to PBs.

For consultant opportunities for projects financed by technical cooperation funds, visit procurement of consultants.

Company contact:

Terry McCallion, Senior Banker, Financial Institutions Team
EBRD,
One Exchange Square,
London EC2A 2JN

Tel. +44 (0)20 7338 7478
Fax: +44 (0)20 7338 7380

E-mail: MccalliT@EBRD.com

EBRD contact:

Svetlana Astakhova, Operation Leader: astakhos@ebrd.com

Business opportunities:

For business opportunities or procurement, contact the client company.

General enquiries:

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com