Rada passes at first reading bill on energy efficiency fund
Ukraine's Verkhovna Rada has passed at first reading bill No. 5598 on the energy efficiency fund registered on December 26, 2016.
A total of 227 lawmakers backed the document on Tuesday.
"This bill is important for us as a technical and financial tool permitting not only to effectively use the national budget funds, but also attract international assistance… The European Union [EU] clearly confirmed that they are ready to support us with financing – EUR 100 million – and replenish this fund," Deputy Prime Minister and Minister for Regional Development, Construction, Housing and Utilities Hennadiy Zubko said, speaking in parliament.
He said that the International Finance Corporation (IFC) would be present in the supervisory council of the energy efficiency fund. The IFC would support the fund from the technical point of view. Free technical assistance centers in the energy efficiency area would be created in each region of Ukraine with support of the EU.
As reported, earlier it was planned that the energy efficiency fund will start operating in April 2017.
Zubko said that the fund would help to cut gas losses in the heat supply system and the housing sector. Annual losses of gas total 2.4 billion cubic meters (bcm) and 9 bcm respectively. It will allow creating up to 75,000 new jobs and launch the energy efficiency service market of around EUR 30 billion in five or eight years. The key players on the market would be small and medium-sized enterprises (SME).
The minister said that the fund will be under control of an independent supervisory board, consisting of representatives of international partners and the government. The technical office of the fund will design standard projects on energy efficiency renovations to multifamily buildings and financial tools to implement them.
The fund will cooperate with owners of private and multifamily residential buildings to boost their energy efficiency class and compensate expenses on energy efficiency modernization.
The compensation would depend on what the energy efficiency class will be after the implementation of the projects.
The largest compensation for homeowner associations would be 50% of spent funds if the energy efficiency of the building is increased to class A under international standards after modernization.