23.05.2018 | News
NEFCO and the City of Lutsk in Western Ukraine have today signed a loan agreement aimed at financing energy-efficiency measures in public buildings in Lutsk. The city has approx. 200,000 inhabitants and is the administrative centre of the Volyn district. NEFCO will provide EUR 5 million in loan financing for the project.
The project aims to refurbish 40 public buildings, including day-care centres, schools, art and music schools, as well as the public swimming pool in the city. In total, 26,000 children, teachers and visitors will benefit from the improvements.
The project is expected to generate environmental benefits through reducing heat consumption by 60% and electricity consumption by 35%, leading to reduced CO2 emissions of approx. 4,000 tonnes annually. These reductions will also enable the City of Lutsk to save about EUR 600,000 annually in heating and electricity costs.
The planned measures include installation of individual heating systems; thermal insulation of facades and roofs; replacement of doors and windows; upgrade of kitchen equipment; ventilation improvements; thermal insulation of pipes as well as replacement of old incandescent light bulbs with new LED lights.
“We are very pleased to continue our good cooperation with the city and to be able to contribute with financing to this large investment together with E5P to help the city become more energy efficient,” said NEFCO’s Executive Vice President Trond Moe in Kiev today.
The total investment for the project is EUR 7.6 million. In addition to NEFCO, the Eastern Europe Energy Efficiency and Environment Partnership (E5P) will support the project with EUR 1.3 million in grant funding and the city itself will contribute EUR 1 million. Sweden has financed the feasibility study and will also contribute with financing to support the project implementation unit.
NEFCO has previously financed the implementation of energy-efficiency measures in 14 day-care centres and schools in Lutsk, through its facility for energy saving credits, and is currently financing the modernisation and reconstruction of water supply and water disposal systems at Lutsk Vodokanal.
Similar large-scale energy-efficiency projects with NEFCO financing are currently being implemented in the cities of Chernivtsi, Ivano-Frankivsk, Kiev and Zhytomyr. NEFCO’s current project portfolio in Ukraine comprises over 130 projects at various stages totalling approx. EUR 88 million.
For further information, please contact:
Amund Beitnes, Senior Investment Manager
amund.beitnes [at] nefco.fi
+358 10 6180 658
About E5P
The Eastern Europe Energy Efficiency and Environment Partnership (E5P) is a €180 million multi-donor fund managed by the EBRD and designed to promote energy efficiency investments in Ukraine and other eastern European countries. The fund was established under an initiative of the Swedish government during its presidency of the European Union (EU) in 2009. E5P complements energy efficiency loans provided by financial institutions including the European Bank for Reconstruction and Development, the European Investment Bank, KfW, NEFCO and the World Bank Group. Contributors to E5P are the EU and the US, as well as Denmark, Estonia, Finland, Germany, Iceland, Ireland, Latvia, Lithuania, Norway, Poland, Slovak Republic, Sweden, Switzerland and Ukraine.