School in Eastern Ukraine reopens after energy-efficiency modernisation

Secondary school No. 10 in the city of Bakhmut celebrated its inauguration under festive circumstances earlier this week. A delegation from Norway, headed by the Norwegian Ambassador in Ukraine, and the First Deputy Governor of the Donetsk Region participated in the inauguration.

“The latest technologies, energy supply measures and special materials were used in the rehabilitation of school No. 10. So far, four projects concerning the reconstruction of public buildings, hospitals and educational facilities as well as modernisation of the street lighting network have been completed with NEFCO financing in the region. A further four projects are currently under implementation. The investments for all eight projects total more than EUR 5 million,” said Igor Moroz, First Deputy Head of Donetsk Regional State Administration, in connection with the inauguration.

NEFCO has financed two energy-efficiency projects in the city of Bakhmut. The city first received grant financing for the rehabilitation of school No.10 from the Nordic Initiative for Energy Efficiency and the Humanitarian Support Fund (NIU). The programme is financed by Norway and the other Nordic countries and managed by NEFCO. A second project, the renovation of day-care centre No. 40, Posmishka, is currently being implemented and will benefit the youngest population in the city. This project is financed by NEFCO with support from NIU. The Norwegian delegation also visited the day-care centre as well as two schools under renovation in Druzhkivka in connection with its two-day visit in Eastern Ukraine.

“Energy and energy efficiency are the main focus areas of the Norwegian development cooperation in Ukraine. In my view, it is particularly important to engage in the areas close to the contact line in Donetsk and Luhansk, and I welcome NEFCO’s new energy-efficiency projects in Bakhmut. I would underline the significance of education for the future of Ukraine, and the upgrading of educational facilities is therefore especially meaningful,” said Ole T. Horpestad, Ambassador of Norway to Ukraine, in Bakhmut.

Bakhmut is a Ukrainian city historically known for the extraction of rock salt. In Soviet times, it was an industrial centre. Now, it is a city in urgent need of energy-efficiency improvements to its municipal infrastructure. Situated in the Donetsk region, only 30 km from the military line, the city hosts about 42,000 internally displaced people, almost doubling the number of inhabitants.

The comprehensive rehabilitation of school No. 10 has been carried out during 2019, from March to October. Insulation measures have been implemented, doors and windows replaced and an individual heating substation installed. The renovation and implemented measures will lead to lower energy consumption, allow the funds of the city budget to be used more efficiently and improve the learning conditions for the schoolchildren and their teachers. The project received EUR 400,000 in grant financing from the NIU programme.

NEFCO is one of few international financial institutions actively providing a combination of grants and loans for Ukrainian cities close to the conflict zone in Eastern Ukraine. The cooperation with NEFCO is very important for the city and the provided funding has made the renovations possible. In addition to energy savings and CO2 emission reductions, the renovations will result in comfortable conditions for the children, teachers and staff in the school and at the day-care centre. The renovations will benefit approx. 1000 children in the city, incl. 38 children from internally displaced families.

The second project in the city of Bakhmut was initiated after successful cooperation on the inaugurated school No. 10. The experience gained from this project has shown the city the positive impact of the investment.

“I take this opportunity to express my gratitude to the Norwegian Embassy in Ukraine, NEFCO and the entire project team for their assistance and support in developing energy-efficiency projects in the city. Through the implemented and ongoing projects, the Bakhmut community is taking confident steps towards sustainable energy development,” said Oleksiy Reva, Mayor of the city of Bakhmut, in connection with the inauguration ceremony.

In connection with the renovation of day-care centre No. 40, the following measures will be carried out: capital repair to the double-slope roof; insulation of the exterior wall, the socle and the attic; installation of an individual heating substation; and replacement of old doors and windows with new energy-efficient ones.

For the renovation of day-care centre No. 40, NEFCO has approved both a grant, from the NIU programme, and loan financing. The loan is provided from NEFCO’s Energy Saving Credits programme. The total investment is UAH 21,400,000 (EUR 787,000). NEFCO’s share is about 60% and includes a loan of up to UAH 12,800,000 (approx. EUR 470,000) and a grant up to EUR 200,000 (approx. UAH 5,444,000).

The two projects are expected to reduce CO2 emissions by about 280 tonnes annually and heat consumption by approximately 950 gigacalories. This will lead to total annual cost savings of about EUR 70,000 for the city of Bakhmut. The cooperation with the city is a good example of how energy-efficiency investments can be scaled up with financing from NEFCO.

“The city of Bakhmut has been active in the field of energy-efficiency investments and has started several renovation initiatives in the city. We are pleased to cooperate with a very dedicated and result-oriented project implementation team from the city,” commented Iryna Fedorenko, Investment Advisor at NEFCO Representative Office in Ukraine, in connection with the inauguration.

In addition to project financing, NEFCO will contribute support for technical assistance for the whole process, from the development of the project proposal to project completion. The technical assistance for both projects is financed by Sweden.

About the Nordic Initiative for Energy Efficiency and the Humanitarian Support Fund

The NIU fund was launched by the Nordic Ministers of Foreign Affairs in 2014, and since then the programme has grant-financed urgent renovations of public buildings and street lighting systems in 29 cities in the Eastern part of Ukraine for a total of 37 projects. The total financing granted for these projects is EUR 17 million and EUR 1.3 million for technical assistance.

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