Ukraine to modernise district heating system with EIB and E5P aid


In Ukraine, the European Investment Bank (EIB) is partnering with the Eastern Europe Energy Efficiency and Environment Partnership (E5P) to upgrade the municipal district heating system in the city of Kryvyi Rih.

The EIB has issued a  €31.6 million ($37.3 million) loan, which will be supplemented by a €6.4 million ($7.5 million) grant from E5P to fund the Kryvyi Rih District Heating Modernisation project.

The project is part of the broader Ukraine Municipal Infrastructure Programme (UMIP) being promoted by the Ministry of Communities and Territories Development of Ukraine.

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The E5P grant will finance the installation of individual heating substations and the introduction of a modern monitoring and control system in 376 public buildings including schools, kindergartens and hospitals. It will help increase the efficiency of heating distribution and production, in turn reducing CO2 emissions by 4 208 tonnes per year and achieving energy savings equivalent of up to 2 226 m3 of natural gas per year.

Jean-Erik de Zagon, head of the EIB resident representation for Ukraine, said: “Municipal infrastructure in Ukraine is going through a process of substantial structural changes, including the restructuring of public utilities and the reform of tariffs in the provision of public services including water, waste management, transport and electricity. As the EU climate bank, the EIB supports these changes which will provide significant environmental benefits for the city of Kryvyi Rih, contributing to better energy management and the economic development of Ukraine.”

Kateryna Stasiuk, E5P principal manager commented: “The E5P multi-donor Fund is supporting Ukraine with grants of €134 million with the European Union and Sweden being the largest contributors. Municipal district heating has been a priority sector for E5P in Ukraine since the start of activities in 2009.  For the EIB project in Kryvyi Rih, the E5P investment grant is financing demand-side investments, such as individual heating substations and SCADA systems, hence introducing modern technologies with high environmental benefits. The E5P looks forward to supporting further investments to help the city build sustainable and affordable infrastructure.”