EBRD will issue EUR 140 mln to Kyivteploenergo
The European Bank for Reconstruction and Development (EBRD) will provide municipal company Kyivteploenergo with a loan of EUR 140 million for the development of the thermal infrastructure of the capital, the bank's board of directors approved the project last week.
"The loan will be split into two equal tranches to finance critical rehabilitation and modernization of the district heating infrastructure in the city of Kyiv. The project aims to provide sustainable and efficient operation of the existing combined heat and power plants and boiler houses in the city of Kyiv, improve the reliability of heat transportation, address other critical challenges in rehabilitating and modernizing the city's district heating system, enhance the quality of heat and hot water services to residential and non-residential customers and improve the company's operational and financial performance and capacity," the bank said on its website.
"The project is a part of the Green Cities Framework 2 designed to serve as a sector-wide catalyst for addressing environmental challenges in municipalities," the report says.
Kyivteploenergo is wholly owned by Kyiv, it is the operator of the city's centralized heating system, consisting of two large gas CHPPs, 15 large, 168 small and medium-sized boiler houses, 2,800 km of heating networks, more than 9,400 heating points and the Energia waste incineration plant.
Kyiv City Council approved the attraction of this loan for up to 13 years in April this year, authorizing mayor of the city Vitali Klitschko to sign a guarantee agreement with the EBRD.
The EBRD is the largest international financial investor in Ukraine.