To further support the development in Ukrainian municipalities towards a green transition, Nefco and Sida have signed a new guarantee agreement. This will enable some 15 new loans from Nefco for up to EUR 50 million over the next 10 years. It is expected that the contracted energy-efficiency projects will decrease CO2 emissions by 77,000 tonnes per year.

One of our main areas is to support municipal infrastructure development in Eastern Europe, related to modernisation of district heating, water supply and wastewater treatment as well as implementation of energy-efficiency measures in public buildings. Together with an earlier guarantee from Sida, a total of EUR 100 million can be lent to Ukrainian municipalities, contributing to about 160,000 tonnes reductions of annual CO2 emissions. These reductions correspond to the yearly consumption emissions from 20,000 Swedes.

Nefco is financing long term loans to Ukrainian municipalities, which is not offered to the cities by the private banks in the country.

The previous guarantee agreement between Nefco and Sida was entered into in 2014, also for the amount of EUR 50 million. The guarantee has been utilised to almost 100% to cover 14 loans that run for between 8–10 years. The servicing of the loans has proceeded without defaults,  which  means that until now there has not been a need to call on the Sida guarantee.

Since 2010, Nefco has financed over 300 projects, incl. grant financed projects, for a total amount of over EUR 300 million in Ukraine. Of these more than 170 projects have been implemented and the loans re-paid.

For further information, please contact:

Ronny Nilsson, Senior Adviser, Nefco
+358 10 618 06 42, ronny.nilsson@nefco.int

Photo: Energy-efficiency modernised day-care center No. 431 in Kyiv, Ukraine