UKRAINE ENERGY SERVICE COMPANY - UKRESCO

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To establish the first energy service company (ESCO) in Ukraine. UkrEsco will be state owned and financed by a sovereign loan of US$ 30 million from the EBRD. Project objectives: To identify and implement energy-saving investments in small and medium-sized enterprises (SMEs) and public sector institutions and to encourage the development of broader ESCO activities in Ukraine. The project will: (i) demonstrate to potential clients the possibilities for reducing energy costs where businesses are run on a sound commercial basis; and (ii) encourage private sector investors to develop ESCO activities in Ukraine. The borrower will be Ukraine. The implementing agency will be the State Committee of Ukraine for Energy Conservation. The EBRD will provide a sovereign loan of US$ 30 million (ECU 25.5 million). Total project cost is anticipated to be ECU 34.1 million, financed from the EBRD loan and technical assistance funds. The project will introduce modern technology and energy management practices in SMEs. UkrEsco investments will help to realise energy savings on its clients' premises. These projects will not only reduce energy wastage by introducing efficient technologies, but will also reduce the generation and release of energy-related pollutants, such as SO2, NOx, dust, and CO2. This is of direct environmental and health and safety benefit for local residents, and will also help to reduce the large overall volume of pollutants resulting from energy use in Ukraine. Technical cooperation funding of ECU 6 million is being provided.