UREEFF - OTP Bank Ukraine

Location:

Ukraine

Project number:

47749

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

10 Mar 2020

Status:

Signed

PSD disclosed:

03 Aug 2014

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

The EBRD is opening a limit under Ukraine Residential Energy Efficiency Financing Facility ('UREEFF') in favour of JSC OTP Bank Ukraine ('OTPU'). OTPU will lend up to UAH 520 million (€19 million equivalent) in sub-loans to private residential stakeholders, including individual homeowners, groups of homeowners, housing associations, condominiums and cooperatives.

Project Objectives

Eligible sub-loans will consist of investments in high performing energy efficiency technologies and measures, which can be expected to achieve a minimum energy saving of 20 per cent when compared to market norms.

Incentive grant of up to €5.8 million provided by the Eastern European Energy Efficiency and Environmental Partnership (E5P) will support the Project through investment incentives for Sub-borrowers.

Transition Impact

ETI score: 80

The Project is expected to generate transition impact by demonstrating benefits of household energy conservation and promoting the expansion of energy efficiency investments in the otherwise difficult residential sector. It will also support the expansion of the market for sustainable energy equipment and services, resulting in increased competition among the suppliers, installers and vendors.

UREEFF will ensure transfer of the necessary skills to OTPU and project stakeholders (i.e. local engineers, architects and designers) acquired through sub-project implementation as well as through dedicated trainings.

Client Information

OTP BANK PJSC

A 100 per cent subsidiary of OTP Bank Plc., Hungary. OTPU is a universal commercial bank with a country-wide presence, specialising in servicing middle-sized corporates and consumer finance. OTPU was the 9th largest bank in Ukraine with 3 per cent share of total banking assets as of the end of 2019. OTP Bank Plc. is a leading Hungarian financial group with around 20 per cent market share in total assets.

EBRD Finance Summary

UAH 143.00

None

Total Project Cost

UAH 520,000,128.00

UAH 520 million (€ 19 million equivalent)

Environmental and Social Summary

Categorised FI (2014). OTPU is an existing client and is satisfactorily implementing the Bank's E&S requirements. OTPU will be required to continue to comply with PRs 2, 4 and 9, ensure sub-loans comply with the eligibility criteria for residential energy efficiency and submit Annual Environmental and Social Reports to the Bank.

Technical Cooperation and Grant Financing

UREEFF will be supported by a comprehensive technical assistance programme to provide implementation support to participating financial institutions and sub-borrowers. € 4.5 million funding for the TC programme are secured from SIDA-EBRD Ukraine Energy Efficiency and Environment Consultant Cooperation Fund (SWUK) and E5P (Eastern European Energy Efficiency and Environmental Partnership).

Company Contact Information

Mr. Volodymyr Mudryi
+380 44 490 0500

PSD last updated

11 Mar 2020

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP 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 following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Project Complaint Mechanism (PCM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g., through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s accountability mechanism.

The accountability mechanism independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit our webpage to find out how to submit a complaint through the confidential online form, by email, mail or telephone. We are available to discuss your concerns and answer any questions you may have about the submission or handling of complaints. Complainants’ identities may be kept confidential upon request.

Please note that after the appointment of the new mechanism Head in 2020, the revised Project Accountability Policy and Guidance will come into effect to guide case handling.

 

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