Energy Efficiency Fund Signs Trilateral Agreement with IFC and Ukrgazbank to Launch Program Financing Projects for the Thermal Renovation of Buildings for HOAs
On 28 March 2019, a trilateral agreement between the International Finance Corporation (IFC, World Bank Group), the Energy Efficiency Fund and JSB Ukrgasbank was signed during the launch of the financing program for the thermal renovation of multi-apartment buildings by home owners’ associations (HOAs).
This agreement creates the legal infrastructure for the provision of partial compensation for energy efficiency measures in multi-apartment buildings that implement energy efficient modernization measures. The document outlines the legal framework for the implementation of the First Movers Program, which aims to test the Fund’s procedures. At present, the First Movers Program includes 15 HOAs that have already received the results of energy audits and are ready for the next steps. The signing of this agreement for the first HOAs launches the process of grant funding from the Fund.
“This agreement opens the way for the financing of HOA thermal renovation funds within the framework of Energy Efficiency Fund programs. I am convinced that all HOAs receiving the assistance of the Fund will experience key benefits including technical assistance in the implementation of measures and transparency checks to prevent fraud and corruption. Most importantly, they will receive lower bills for housing and communal services, increased comfort in their homes and increased market value of their property,” - said Deputy Prime Minister and Minister of Regional Development, Construction and Housing and Communal Services of Ukraine Hennadii Zubko.
IFC is proud of the confidence that international partners and the Government of Ukraine have demonstrated in the implementation of this innovative and highly relevant program for every resident of multi-apartment buildings. The involvement of partner banks in the energy modernization of the country ensures efficiency and the effectiveness of government and international fund allocation, - said Jason Brett Pellmar, Head of the IFC Regional Office in Ukraine, Belarus and Moldova.
“Testing the Fund’s operational procedures within the framework of the First Movers Project will make it possible to monitor the practical implementation of the Thermal Renovation of Multi-Apartment Buildings program. This will avoid any shortcomings in the full-scale work of the Fund. Most importantly, this project will help us to develop practical recommendations for all the HOAs that apply to the EE Fund following the full launch of the program,” - said Yuliia Holovatiuk-Ungurianu,, Acting Director of the Energy Efficiency Fund.
“It is satisfying that Ukraine’s leading eco-bank, which is already the undisputed leader providing loans to HOAs, has been chosen as a financial partner for such an important project for Ukrainians. We already have considerable successful experience implementing large-scale projects covering the full thermal modernization of residential premises. We have financed the largest projects in Ukraine, including a project worth almost UAH 10 million in Kyiv and a UAH 3.5 million project in Lutsk. Thanks to cooperation with the Fund, there will now be more such projects,”, - said Chairman of the Board of JSB Ukrgasbank" said Kyrylo Shevchenko.
The Energy Efficiency Fund is the only government agency in Ukraine established by the Government of Ukraine according to the Law of Ukraine “On Energy Efficiency Fund” to support energy efficiency initiatives, introduce incentive instruments and support energy efficiency and energy saving measures in buildings in the residential sector. This includes taking into account the National Energy Efficiency Plan to reduce carbon dioxide emissions in fulfillment of the Paris Agreement, to implement the European Union Acquis Communautaire and the Treaty Establishing the Energy Community, to ensure compliance by Ukraine with international liabilities with respect to energy efficiency.
The Energy Efficiency Fund provides support to the homeowners’ associations from multi-apartment buildings (HOAs) for the implementation of energy efficiency measures through grants and implementation of comprehensive technical solutions incorporating the best European practices in the thermal modernization of buildings. The Fund’s activities are financed by the State Budget of Ukraine, with financial support from the EU and the Government of Germany.
The Energy Efficiency Fund Program is implemented in cooperation with the International Finance Corporation (IFC), DeutscheGesellschaftfürInternationaleZusammenarbeit (GIZ) GmbH and United Nations Development Program (UNDP).