The European Bank for Reconstruction and Development (EBRD) has approved the provision of a loan of up to EUR 50 million to Kyiv to support the liquidity of the municipal utility Kyivteploenergo and ensure the uninterrupted provision of critical municipal services under wartime conditions, according to the bank’s website.
"The bank’s loan will support the key utility company in meeting its critical liquidity needs to ensure the uninterrupted delivery of essential municipal services to residents and businesses in the city, despite direct war damage and the additional demand for district heating services driven by the presence of a significant number of IDPs," the statement reads.
The financing is intended to ensure uninterrupted heat supply to schools, kindergartens, hospitals, residential buildings, and enterprises, as well as electricity generation for the city and the energy system.
Due to war risks, the loan will be partially covered by a European Union first-loss guarantee under the Resilience and Livelihoods Framework (RLF) within the Municipal Infrastructure, Industrial and Resilience Program (MIIR) under the Ukraine Investment Framework (UIF).
The project is part of the EBRD’s Resilience and Livelihoods Framework (RLF). It is also intended to support the development and expansion of municipal services for veterans and their family members.
As reported, in June, Kyiv Mayor Vitali Klitschko stated that the Kyiv City Council must approve the attraction of a EUR 50 million EBRD loan for Kyivteploenergo to implement measures of the capital’s Resilience Plan. He estimated the cost of priority energy resilience measures for Kyiv at approximately UAH 30 billion.
