OREANDA-NEWS. April 25, 2007. The European Bank for Reconstruction and Development is providing a loan facility of $50 million to JSC The State Export - Import Bank of Ukraine, the second largest state bank in the country, reported the press-centre of  EBRD.

The main purpose of this project, which is the first ever EBRD cooperation with UkrExim Bank, is to tackle Ukraine’s energy intensity, which is over three times that of the average for the European Union.

The transaction is implemented under a ?100 million framework to work with financial institutions on energy efficiency and renewable energy projects in Ukraine, approved by the Bank’s board in October 2006.

Potential clients under the energy efficiency framework will be local private sector companies, which should be able to receive sub-loans of up to $5 million from participating banks.
As a result of the project implementation, private sector companies will reduce their energy consumption and costs, something that is particularly important in the context of rising energy prices in Ukraine. The impact will help businesses remain competitive and reduce their emissions of greenhouse gases, as well as helping to work against climate change and mitigating its effects.

The framework is supported by several important technical assistance components. A project consultant, funded by the Swedish government, is responsible for project screening, marketing and an information campaign. At the same time energy efficiency experts, funded by the Austrian Federal Ministry of Finance, are assisting potential sub-borrowers to identify specific energy efficiency measures, prepare rational energy utilisation plans and assist in preparing loan applications. A Market Demand Study, also funded by the government of Austria, is currently being finalised, and will evaluate the overall market potential for energy efficiency.

The European Bank for Reconstruction and Development is the biggest financial investor in Ukraine. As of the end January 2007 it had committed over ?2,87 billion through more than 130 projects.