Finance Facility (‘Facility”) for energy efficiency investments in residential buildings

As part of the larger effort helping to reduce the energy use by residential buildings in Ukraine, the European Bank for Reconstruction and Development (EBRD), together with the local commercial banks, may in a near future decide to offer a Finance Facility (‘Facility”) for energy efficiency investments in residential buildings. If such facility is offered, it would provide loans to owners of private single and multi-family houses as well as to home owners’ associations enabling them to improve the energy efficiency of their buildings.

Loans would be provided for qualified borrowers for projects that comply with eligibility criteria, which may include type of projects, investment size, expected energy savings, and other usual loan criteria. Loans would likely be offered on a commercial basis with interest rate tentatively set to 15% to 18% (or possibly 12%-14%) with loan repayment of 3-5 years. These conditions will be similar to other commercial bank loans. However, after the successful completion of the project, the Bank may offer to provide an incentive benefit in the form of 5%,10, or up to 20% loan principle reduction, depending on project type and attained energy efficiency improvement.

In order to gauge the interest in such finance facility by the single and multi-family home owners and by the home owners’ associations, and to develop eligible projects for the initial phase of the Facility, the EBRD has engaged two consultant organizations – WorleyParsons and Municipal Development Institute (MDI). Experts from these consultant organizations will gather information from the owners interested in obtaining the loan and will assist, free of charge to the owners, with preparation of technical and economic evaluation of each project and will provide necessary assistance with the preparation of the initial limited number of projects.

Owners of private single and multi-family houses who are considering the energy efficiency improvements to their home or apartment building, and would like to take advantage of this opportunity to be considered for an attractive loan from the Finance Facility to be potentially offered by the EBRD, are requested to fill in the information in a special form. This form could be printed out and submitted by regular mail, fax, or as an attachment to the email to the contact person from MDI at lkozina@mdi.org.ua.