17.04.2024 | News
Nefco and the Eastern Europe Energy Efficiency and Environment Partnership (E5P) have signed capital grant agreements aimed at financing the construction of a solar power plant for a water and wastewater utility in Chortkiv and energy efficiency measures in Vinnytsia. A total of EUR 3.46 million in grant funding has been allocated for both projects.
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- Through EUR 460,000 in grant financing, a new project aims to advance Chortkiv’s transition to green energy sources through solar-powered water treatment for a stable, clean water supply, and bolster the city’s energy independence.
- EUR 3 million in grant financing has been made available to upgrade a district heating system in Vinnytsia that will benefit 16,000 residents and about the same number of persons using public institutions within the project area daily.
- Nefco has a well-established history in Ukraine and has undertaken numerous green projects together with partners such as E5P even before the Russian full-scale invasion. E5P is a multi-donor fund comprising 24 donors to which the European Union and Sweden are the largest donors.
The city of Chortkiv in western Ukraine, in the Ternopil region, serves as the administrative centre of the Chortkiv region. With a population of approximately 38,000, it is an important transport hub, and its economy is predominantly based on the agricultural sector. Through EUR 460,000 in grant financing, this new project aims to advance the city’s transition to green energy sources through solar-powered water treatment for a stable, clean water supply, and bolster Chortkiv’s energy independence.
Vinnytsia is the 12th largest city in Ukraine with approximately 370,000 inhabitants. It is located about 200 km southwest of Kyiv and is an important cultural and economic centre. A total of EUR 6 million in grant financing – EUR 3 million from E5P and EUR 3 million from Sweden – has been made available to upgrade a part of the district heating system that will benefit 16,000 residents and about the same number of persons using public institutions within the project area daily. This project is the second that marks the development of Vinnytsia’s district heating system, which is funded by Nefco with contributions from E5P and Sweden. The first was part of the DemoUkrainaDH programme, which aimed to demonstrate the benefits of state-of-the-art district heating technology and system solutions in Ukraine.
Nefco has a well-established history in Ukraine and has undertaken numerous green projects together with E5P even before the Russian invasion. In addition to pursuing financing activities related to energy efficiency, Nefco and E5P are looking into several new cooperation possibilities that address both the direct and indirect consequences of the war and help the country build back greener and better. The ultimate goals are to strengthen the resilience of the Ukrainian people, promote sustainable development, and further the integration of Ukraine with Europe.
“The E5P donors are delighted to co-finance these two critical investments for Ukraine with capital grants of EUR 3.46 million. The E5P is a multi-donor fund supporting Ukraine with EUR 240 million. Nefco has been our long-standing partner since the creation of E5P in 2010. The E5P donors have full confidence in Nefco to deliver these new projects swiftly for the benefit of the people in Ukraine suffering from the war,” says Kateryna Stasiuk, Principal Fund Manager, Eastern Europe Energy Efficiency and Environment Partnership (E5P).
“Chortkiv is pleased to have such globally recognised partners. I am proud that our cooperation began in 2016 and continues to this day. They believed in us when they provided a loan and a grant for the thermal modernisation of our largest school, which nearly a thousand children attend. We adhered to all agreements, so the collaboration continued: we thermally modernised another school, built smart apartments for Ukrainians fleeing the war from the east and south of Ukraine, and we will continue to implement a strategically important project for our water utility. With such support, we will work even harder,” says Volodymyr Shmatko, Mayor of Chortkiv.
“In 2024, we celebrate the tenth year of our cooperation with Nefco, which began with a heating modernisation project. With the signing of this agreement, we begin the second stage of developing Vinnytsia’s district heating system. We thank Nefco and E5P for putting their trust in us and for supporting the reconstruction of our infrastructure. This confirms that Ukraine is a part of Europe and Vinnytsia is a European city,” says Serhii Matusiak, Deputy Mayor of Vinnytsia.
“We at Nefco are committed to leveraging our experience in Ukraine while continuing to develop new projects to maintain our presence and relevance in the country. These initiatives involving state-of-the-art district heating technology and the use of municipal solar power play a pivotal role in addressing climate change, promoting the green transition, and enhancing Ukraine’s resilience. We remain dedicated to supporting Ukraine to the extent we can,” says Ulf Bojö, Vice President, Eastern Europe, Nefco.
More information about the project in Chortkiv:
Read about an urgent housing project
More information about the project in Vinnytsia:
Read the project description
Watch a video about district heating modernisations in Ukraine
For further information, please contact:
For the project in Chortkiv: Jyrki Rautamäki, Senior Consultant, Nefco
jyrki.rautamaki@nefco.int, +358 45 172 4150
For the project in Vinnytsia: Ronny Nilsson, Senior Adviser, Nefco
ronny.nilsson@nefco.int,+358 10 618 0642
Julia Shevchuk, Chief Investment Adviser, Nefco
Yuliia.Shevchuk@nefco.int, +380 50 358 3518
About E5P
The Eastern Europe Energy Efficiency and Environment Partnership (E5P) is a multi-donor and multi-International Financial Institution (IFI) support fund created thanks to an initiative of the Swedish Presidency of the European Union in 2009. The E5P fund for Ukraine totals EUR 240 million, representing pledges made by the European Union as the largest contributor to the fund and Sweden as the largest bilateral contributor supporting Ukraine, as well as Denmark, Estonia, Finland, Germany, Iceland, Ireland, Latvia, Lithuania, Norway, Poland, Slovakia, Switzerland and the United States. Ukraine is also a donor to E5P with EUR 20 million. The E5P grants are used alongside the IFI loans to complement municipal infrastructure investments to boost Ukraine’s energy efficiency while also having a beneficial impact on the environment and combating climate change. Until today, there are 27 investment projects supported by E5P across Ukraine with a total investment volume of over EUR 1 billion. Read more at e5p.eu
