News Column

Ukrainian Residential EE Financing Facility(UREEFF)

August 12, 2014



Project Status : Active Country:Ukraine Project number: 46798 Business sector:Depository Credit Banks Public/Private: Private Environmental category: FI Target Board date:24 June 2015 Status: Passed concept review, Pending final review PSD disclosed: 7 Aug 2014 The Client : Qualifying Financial Institutions in Ukraine. EBRD Finance : Credit Line. Project Cost : $100 million. Project Description : The EBRD is considering establishing the Ukrainian Residential Energy Efficiency Financing Facility ( the Facility , the Framework or UREEFF ) in the amount of up to $100 million. The funds will be made available to Participating Financial Institutions ( PFIs ) in Ukraine for on-lending to eligible private sector sub-borrowers for sustainable energy ( SE ) investments in the residential sector. To minimise the Foreign Currency (FX) conversion risk of the loan proceeds into local currency and on-lending to the end-borrowers, EBRD credit lines to PFIs will be supported by a partial hedge against local currency devaluation (up to a predefined maximum devaluation ceiling) expected to be funded by a grant from the Clean Technology Fund ( CTF ). The credit line will be also complemented by Donor funds to support the implementation of Technical Cooperation ( TC ) and non-TC incentive mechanism of the Facility. Potential identified donors include: CTF, Eastern European Energy Efficiency and Environmental Partnership ( E5P ), the German Federal Ministry for Environment, Nature Conservation, Building and Nuclear Safety ( BMUB ), and EBRD-Ukraine Stabilisation and Sustainable Growth Multi-Donor Account. Transition Impact : The Transition Impact of the project will derive from demonstration effects of sustainable energy investments and market-based behaviour patterns, skills and innovation. This project is the first residential Sustainable Energy Financing Framework in Ukraine. It will aim at demonstrating the benefits of rational energy utilisation in the light of the rising energy costs and unreliability of the energy supply in the country. The UREEFF will generally encourage PFIs to maintain lending to the retail segment and will allow expanding the financing to previously untapped market segments. The Facility will also generate Transition Impact through dispersion of skills by supporting PFIs in learning how to tap into less conventional sectors such as residential energy efficiency and to evaluate the risks and benefits associated with small scale energy efficiency investments. The UREEFF will also ensure transfer of skills to sub-borrowers and project specifiers (i.e. local engineers/architects/designers). Environmental Impact : Categorised FI. All PFIs under the UREEFF will be required to comply with PRs 2 and 9. Any new PFI will be required to complete the Environmental and Social & Human Resources Due Diligence Questionnaires for ESD to assess compliance against the PRs. All PFIs will be required to ensure that sub-loans comply

Project completion date : 2015-08-31 12:00:00

Major organization : EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT (EBRD)

Address : One Exchange Square London EC2A 2JN United Kingdom Website : http://www.ebrd.com/



Country :United Kingdom

Financier : European Bank for Reconstruction and Development (EBRD),


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Source: TendersInfo (India)


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