Ukraine Sustainable Energy Financing Facility (USEFF)

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Translated version of this PSD: Ukrainian The EBRD is considering a framework operation of USD 100 million to address acute needs for sustainable energy investments in energy intensive Ukraine. The framework will comprise credit lines to local banks and leasing companies (PFIs) for on-lending to private companies undertaking sustainable energy investments. The facility will be supported by a grant from the Austrian Ministry of Finance for technical assistance to participating financial institutions, sub-borrowers and local experts. For external visibility, this facility will maintain the known brand of UKEEP which was the name of the initial credit line launched by the EBRD in 2007. The Project will have following sources of transition impact: Demonstration Effect The Project will demonstrate the benefits of energy conservation and promote the expansion of sustainable energy lending and leasing in the energy inefficient Ukraine. The Framework will also demonstrate the effects of rational energy utilisation for improving industrial competitiveness. The financial viability of energy efficiency and renewable energy investments will spur participating banks, leasing companies and other market players to continue this lending type on a sustainable basis in the future. The Project will expand the market for energy efficiency lending in Ukraine thanks to dedicated medium-term funding which is currently constrained in Ukraine. Transfer of skills The Project will transfer and build expertise, among participating financial institutions, end users and local experts, related to sustainable energy investments. New and existing PFIs will build expertise in identifying energy efficiency investment opportunities, marketing such products, as well as assessing loan applications related to energy efficiency investments. Sub-borrowers will be trained to structure loan applications related to energy efficiency investments while local engineers will be trained to help both PFIs and sub-borrowers, with the aim of building a local expertise. Banks and leasing companies in Ukraine. USD 100 million. USD 100 million. Categorised FI. PFIs will be required to comply with the EBRD’s Performance Requirement (PR) 2. All sub-loans financed under the USEFF will need to comply with the requirements of PR9. PFIs will submit annual environmental and social reports to the EBRD. Technical cooperation will be funded by the Austrian Ministry of Finance. Consultants will be contracted by EBRD to provide implementation support to PFIs, sub-borrowers and local experts, including: awareness campaign among Ukrainian companies, project pipeline development, energy audits at industrial companies, implementation support for sub-borrowers and eligibility verification.