PSEEF: Kremenchuk Public Buildings EE

Location:

Ukraine

Project number:

48019

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Target board date:

13 Dec 2017

Status:

Signed

PSD disclosed:

17 Nov 2017

Translated version of this PSD: Ukrainian

Project Description

Provision of a senior loan of up to EUR 6 million to the Communal Enterprise "Kremenchuzka Municipalna Energoservisna Kompanya" (the "Company"), a municipal energy management company of the city of Kremenchuk (the "city") set up to manage energy saving projects in public buildings in the city. The loan is to be complemented by a grant of up to EUR 1.5 million, proposed for co-financing from the EBRD Shareholder Special Fund ("SSF"), and a concessional loan of up to EUR 1.5 million from the Clean Technology Fund (the "CTF"). The loans will be secured by a municipal guarantee from the city.

Project Objectives

The proposed investment will enable the city to finance energy efficiency measures in 66 public buildings, including 38 kindergartens, 23 schools and 5 hospitals through energy performance contracts implemented by private construction/ engineering or energy service companies selected by competitive tender. The investments are expected to result in a reduction of energy and maintenance costs, decrease of CO2 emissions and improved comfort levels at kindergartens, schools and hospitals.

Transition Impact

Good.

Green: The project is qualified as a GET investmens due to energy savings and reduction of CO2 emissions.

Competitive: The project enables the involvement of private sector resources to design and implement energy saving projects taking part of the risk or the realised energy savings.

Client Information

MUNICIPAL ENERGY MANAGEMENT COMPANY OF THE CITY OF KREMENCHUK

EBRD Finance Summary

EUR 6,000,000.00

Total Project Cost

EUR 9,000,000.00

Environmental and Social Summary

Categorised B (2014 ESP). The environmental and social impacts associated with energy efficiency improvements to public buildings can be readily identified and managed. Due diligence for this project included a review of the technical consultant's report and completion of an environmental and social questionnaire by the client. As the choice of buildings and the exact scope of the project are still to be finalised, site-specific environmental and safety assessment, preparation of EHS management plan, including safe asbestos removal, for the works and public disclosure requirements have been defined in the ESAP.

The consultants have reviewed the overall approach to the project, carried out visits to a number of sites and assessed the proposed scope of energy efficiency measures. This work has resulted in an initial list of 66 building to be upgraded. The majority of these buildings are more than 20 years old with average energy consumption two time more than standards. The upgrade measures will include insulation of internal and external walls, roofs and basements, installation of new windows and LED lighting, lagging of heating pipes and the introduction of automated temperature controls. The project will also include other refurbishment measures, such as installation ventilation systems and removal of asbestos. It is estimated that energy savings up to 50 per cent can be achieved. It is envisaged that the project will lead to reductions in energy consumption of around 20,000 MWh per year and CO2 savings of around 5300 tons per year. The project is fully consistent with the GET approach.

Environmental and social impacts will be site-specific and largely restricted to the construction phase. These include occupational health and safety risks, waste management and temporary loss of access to parts of public buildings. An Environmental and Social Action Plan has been developed to address these issues. It includes requirements to appoint environmental and safety managers and develop EHS and waste management plans. Information on sub-projects will be disclosed at sites and online and will include provision for recording and addressing grievances and complaints. For buildings where asbestos is identified, an asbestos management plan will be developed. Monitoring of the project and ESAP implementation will be carried out via annual environmental and social reports provided by the client.

Technical Cooperation

Pre-signing (Project specific)

Feasibility study covering technical, environmental and social due diligence of the Company and the City. The estimated total cost of this assignment is i up to EUR 200,000, to be covered by the Ukraine Public Sector Energy Efficiency Financing Framework TC, for which funding is provided by the SIDA-EBRD Ukraine Energy Efficiency and Environment Cooperation Fund ("SWUK"). 

Post-signing (Framework related)

Procurement and implementation support to the Company and the City to prepare and procure EnPCs, monitor implementation of energy efficiency measures and verify achievement of guaranteed energy savings. The estimated cost of this assignment is EUR 300,000, to be covered by the Ukraine Public Sector Energy Efficiency Financing Framework TC, for which funding is provided by the SIDA-EBRD Ukraine Energy Efficiency and Environment Cooperation Fund ("SWUK").

Company Contact Information

Tatiana Andrievskaya
energy@kremen.gov.ua
+38067-530-5044
0536-74-38-64
2 Peremogy Sq., Kremenchuk, 39600, Ukraine

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

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

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Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.