NGO «GoLOCAL» announces another result of working with European financial institutions – the launch of the Project thermo-modernization of kindergartens in Bila Tserkva.
Due to the close cooperation of «GoLOCAL» and the City Council, in August this year, the European Investment Bank (EIB) has identified Bila Tserkva as the potential beneficiary of one of its energy efficiency projects. According to it, due to funds of the EIB 36 kindergartens of Bila Tserkva will be thermo-modernized within the years 2017-2022.
The project aimed at the insulation of outer walls, modernization of ventilation installations, modernization of windows and door frames, and modernization of internal installations such as the central heating and hot water systems as well as reconstruction of the lighting system and installation of electricity meter in each of 36 pre-schools.
Project developers’ engineers assure that the said set of technological measures will save energy costs in the future by 40%, and most importantly it will create favourable conditions for children and staff. Also, in the future, it will save a significant amount of money to the local budget.
It is noteworthy that the EIB plans to invest into the project more than 8,2 mln. EUR (approximately 240 mln UAH). In general, the basic credit terms are as follows:
- maturity – by 2022
- grace period – 5 years
- the maturity of the principal amount – 17 years
- interest rate – 1.31% per annum
- repayment – equal semi-annual instalments
- financial guarantee to the bank from the city
- procurement procedure conducted by the bank (international standard).
Preliminary evaluation of the project showed that it is entirely self-sustaining, the estimated debt by saving on paying for energy is less than 19 years.
Currently, the documents on the approval of the terms and scope of credit and obtaining the conclusion of the creditworthiness of the city are submitted to the Ministry of Finance.
The European Investment Bank (EIB) – State Finance Institution of, the European Union, to fund the development of European regions in the form of long-term loans.
About 60% of EIB lending in Ukraine usually falls on the public sector – the development of transport infrastructure, energy, energy efficiency projects, municipal projects, environmental projects, and 40% of lending aimed at SMEs through local partner banks.
By the end of 2016, the European Investment Bank intends to invest in projects in Ukraine, about 800 million euros. Total EIB loan portfolio in Ukraine amounted to 4.3 billion Euros.