The European Bank of Reconstruction and Development (EBRD) approved on July 21 a 140 million euro loan to KyivTeploEnergo, the company that heats the water in Kyiv and that belongs to the Kyiv city administration, to finance critical repairs of the city’s heating infrastructure.
The loan will be split into two equal tranches of Eur. 70 million ($83 milion), which will be primarily used to “provide sustainable and efficient operation” of KyivTeploEnergo’s two gas-fired power stations and 183 boiler-houses.
The money will also be spent on increasing the efficiency of hot water delivery to end consumers, as well as streamlining the company’s financial operations.
The loan is part of the EBRD’s Green Cities Framework 2 (GCF2) project, which seeks to promote ecologically friendly urban spaces.
Kyiv’s City Council voted overwhelmingly in April to approve the deal. Their press service announced that the loan investment was expected to lead to an annual saving of 8.7 million cubic meters of gas and 353 megawatts of electricity.
The investment solidifies the EBRD’s position as the largest foreign investor in Ukraine, with a cumulative investment total of Eur. 14.8 billion ($17.5 billion) as of 31 May. The KyivTeploEnergo loan, coupled with other deals signed since that date, have pushed that figure to well over Eur. 15 billion ($17.8 billion).
