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EBRD helps upgrade Kyiv district heating system

The residents of Kyiv will benefit from upgraded and more reliable provision of district heating and hot water supply thanks to a €140 million loan from the European Bank for Reconstruction and Development (EBRD) to Kyivteploenergo, the heating and hot water utility serving the Ukrainian capital. The loan will finance the modernisation of existing combined heat and power plants and selected boiler houses as well as the installation of a new dispatching and monitoring system.

 

The EBRD funding will be co-financed by a joint contribution from Kyiv municipality and Kyivteploenergo of at least €26 million to finance the district heating network replacement. This new equipment will be fully compliant with the EU Industrial Emissions Directive.

 

The improvements will enhance energy and resource efficiency as well as the quality and reliability of heating and hot water supply to residential and non-residential customers. The investments will result in annual savings of more than 193,000 tonnes of CO2 equivalent and 25,000 cubic metres of water yearly.

 

The project will be part of Kyiv’s Green City Action Plan (GCAP). The municipality is currently developing a comprehensive investment programme promoting decarbonisation and sustainability.

 

The plan is part of Kyiv’s commitment to improving the urban environment and people’s lives under the EBRD Green Cities initiative, a sustainable urban development programme that Kyiv joined in 2019.

 

The development of the GCAP and of a feasibility study for the modernisation of the district heating system are supported by the government of Sweden with a €700,000 grant.

 

In addition, the United States Agency for International Development (USAID) funded three financial audits of Kyivteploenergo in line with the International Financial Reporting Standards and the development of design documents necessary for the project. It also helped the utility to implement international accounting standards, automate financial reporting, establish an anti-corruption programme and conduct gender equality training.

 

USAID will continue working with Kyivteploenergo to develop a plan for decarbonisation by 2060, enhance internal audit and compliance functions, optimise operational performance and improve the internal code of conduct to promote social inclusion and gender equality.

 

Ukraine is a top-three investment destination for the EBRD. In the past two years alone, the Bank has committed €2 billion to the economy. The EBRD finances infrastructure, energy efficiency and energy security, and agricultural and industrial projects, as well as smaller businesses in the country. It combines the investments with support for policies that promote a more enabling business environment. Greening the economies where it invests is among the EBRD’s top priorities.

 

By Olga Rosca

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