Ukraine Sustainable Energy Financing Facility (USEFF)

Location:

Ukraine

Project number:

43660

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

10 Dec 2013

Status:

Completed

PSD disclosed:

08 Jun 2012

Translated version of this PSD: Ukrainian

Project Description

The EBRD is considering a framework operation of USD 100 million to address acute needs for sustainable energy investments in energy intensive Ukraine. The framework will comprise credit lines to local banks and leasing companies (PFIs) for on-lending to private companies undertaking sustainable energy investments.

The facility will be supported by a grant from the Austrian Ministry of Finance for technical assistance to participating financial institutions, sub-borrowers and local experts.

For external visibility, this facility will maintain the known brand of UKEEP which was the name of the initial credit line launched by the EBRD in 2007.

Transition Impact

The Project will have following sources of transition impact:

Demonstration Effect
The Project will demonstrate the benefits of energy conservation and promote the expansion of sustainable energy lending and leasing in the energy inefficient Ukraine. The Framework will also demonstrate the effects of rational energy utilisation for improving industrial competitiveness.
The financial viability of energy efficiency and renewable energy investments will spur participating banks, leasing companies and other market players to continue this lending type on a sustainable basis in the future.

The Project will expand the market for energy efficiency lending in Ukraine thanks to dedicated medium-term funding which is currently constrained in Ukraine.

Transfer of skills
The Project will transfer and build expertise, among participating financial institutions, end users and local experts, related to sustainable energy investments.

New and existing PFIs will build expertise in identifying energy efficiency investment opportunities, marketing such products, as well as assessing loan applications related to energy efficiency investments. Sub-borrowers will be trained to structure loan applications related to energy efficiency investments while local engineers will be trained to help both PFIs and sub-borrowers, with the aim of building a local expertise.

The Client

Banks and leasing companies in Ukraine.

EBRD Finance

USD 100 million.

Project Cost

USD 100 million.

Environmental Impact

Categorised FI. PFIs will be required to comply with the EBRD’s Performance Requirement (PR) 2. All sub-loans financed under the USEFF will need to comply with the requirements of PR9. PFIs will submit annual environmental and social reports to the EBRD.

Technical Cooperation

Technical cooperation will be funded by the Austrian Ministry of Finance. Consultants will be contracted by EBRD to provide implementation support to PFIs, sub-borrowers and local experts, including: awareness campaign among Ukrainian companies, project pipeline development, energy audits at industrial companies, implementation support for sub-borrowers and eligibility verification.

 

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

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
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.