Small and medium size cities of Ukraine are invited to renovate schools, hospitals and other public buildings

31 March 2023 — The Ministry for Communities, Territories and Infrastructure Development of Ukraine launched a first EUR 100 million call for proposals for Ukrainian municipalities to participate in the EIB funded Ukraine Public Buildings Energy Efficiency (UPBEE) Programme.

The Programme is a €300 million EIB framework loan with Ukraine targeting small and medium sized municipalities, local councils, and regional administrations that were not served so far, and aiming at financing thermal renovations of public buildings such as health care, schools, kindergartens, sports and cultural centres, administrative buildings, etc. It also provides funding for war damage repairs, bomb shelters and adaptations of buildings to ensure they better suit the needs of internally displaced persons (IDPs) and hosting communities. The UPBEE programme is supported by grants of €5 million from the EU Neighbourhood Investment Platform (NIP) and of €4 million from the multi-donor Eastern Europe Energy Efficiency and Environment Partnership (E5P).

The loans to be received by the cities within UPBEE Programme will enable the installation of modern equipment in buildings, such as meters and energy consumption control systems, the modernisation of heating, ventilation and lighting systems, and upgrades to exterior surfaces (facades, roofs, slab insulation, basement ceilings, replacement of windows and doors) etc.

The Programme will also finance repair of damages caused by the war, alignment with current Ukrainian standard (access for disabled people, fire safety, bomb shelters etc.) and adaptations to the buildings to make them suitable to host IDPs.

Increasing the energy efficiency of public buildings will help save electricity and strengthen Ukraine's energy independence. This is especially important now, when Ukrainian cities are suffering from Russian attacks on energy infrastructure and are forced to limit electricity consumption.

The Covenant of Mayors and the United Nations Development Programme (UNDP) will advise the Ukrainian municipalities during the entire programme implementation. This support will include consultation at all stages of the sub-project cycle, including the review of energy audits, technical design, tender documents, procurement, monitoring, sanctions screening and commissioning.

Deputy Prime Minister for the Restoration of Ukraine Oleksandr Kubrakov said: “Despite the ongoing hostilities, Ukraine is recovering fast. At the same time, it is extremely important for us to take into account the advantages of energy efficiency. Today we are launching the Ukraine Public Buildings Energy Efficiency Programme. Thanks to this programme, hundreds of buildings across the country will be restored with the highest energy efficiency standards. I encourage local authorities to submit their project proposals and take a step towards energy-efficient modernisation. Together we can make our country energy-independent, and this will be our contribution to victory. I am grateful to the European Investment Bank, the EU, and the E5P Fund for this key support.” 

EIB Global’s Director of Lending Operations in Neighbouring Countries Lionel Rapaille said: “Even amidst war, development cannot wait, nor can the people of Ukraine wait. We are supporting the efforts of Ukrainian cities to refurbish social infrastructure such as schools, hospitals and sports centres, making them more energy-efficient and future-proof. Thermal modernisation of public buildings will extend the operational life of buildings, save on heating and significant energy savings, which, in turn, will reduce CO2  emissions for the sake of the climate. This is a key priority of the EIB as a climate-oriented EU bank, as well as an urgent need for Ukraine, given Russia's massive shelling of its critical energy infrastructure.”

Head of the Economic Cooperation, Energy, Infrastructure and Environment section at the EU Delegation to Ukraine Chloé Allio said: “The EU has been actively supporting energy efficiency improvements in Ukraine across different sectors, and foremost in buildings. Current rehabilitation efforts as well as further large-scale reconstruction after the victory should include energy efficiency measures as these are key for increasing Ukraine's energy security and energy independence. We welcome the launch of the call for proposals for the EIB energy efficiency loan programme supported with the EU and E5P grant funding. This is a timely opportunity for Ukrainian cities to lay the foundation for sustainable and green recovery.The EU stands ready to assist Ukraine in this process and share the best practices for reconstruction and modernisation in order to rebuild the Ukrainian economy, reduce energy intensity and increase energy efficiency in all areas.”

Applications are accepted from April 3 to June 3, 2023 inclusive. Detailed conditions of the call for proposals, requirements for projects and forms of documents can be found in the official announcement https://mtu.gov.ua/news/34157.html.

For consultations on participation in the programme please contact  UPBEE.support@mtu.gov.ua, tel: +380 50 332 61 49 (WhatsApp, Telegram), +380 44 351 46 31.