📋 Tender Overview
Location: Ukraine
Project number: 54875
Business sector: Municipal and environmental infrastructure
Notice type: State
Environmental category: B
EBRD Finance Summary: EUR 10,500,000.00
Total Project Cost: EUR 15,700,000.00
Project Description
A senior loan of up to €10.5 million to State Communal Enterprise "Lutskteplo" (the "Company") to finance the modernization of the district heating ("DH") system in the City of Lutsk (the "City"). The EBRD loan is a part of a broader financial package, which includes a €4.2 million investment grant from the EU Neighbourhood Investment Platform ("EU NIP") and a €1.0 million co-financing from the City. The Project builds upon the achievements of and lessons from the previous DH project in the City of Lutsk, which was financed by the EBRD, Clean Technology Fund and Eastern Europe Energy Efficiency and Environment Partnership.
Project Objectives
The EBRD loan and the investment grant from the EU NIP will be used to finance i) the replacement and interconnection of DH networks along with optimization of their diameters; (ii) the installation of heat pumps and biomass-fired boiler(s); and iii) the installation of dispatching and monitoring system also known as SCADA. The total Green House Gas ("GHG") emission reduction from the Project implementation is calculated to be 10,191 tonnes of CO2e per annum.
Transition Impact
ETI score: 70
The Project is part of the Resilience and Livelihoods Framework ("RLF"). The primary objective of the transaction is to contribute to Inclusive quality of the Framework by promoting access to vital services that enable people's livelihoods. The Project will contribute to preserving and improving the livelihoods of the residents in the City of Lutsk by ensuring reliable access to DH services, which have been negatively affected by the ongoing war. The Project will also support livelihoods of more than 20,000 Internally Displaced Persons ("IDPs") hosted by the City, the majority of whom cannot afford alternative heating solutions, and will enable IDPs to integrate into the local economy and rebuild their lives. The Project will also mitigate against health risks connected with abnormally low temperatures in residential apartments, public health and educational institutions.
Transition impact will be also derived from the Green quality. This will be inter alia achieved through diversification of energy sources thanks to the installation of new biomass boiler and air-water heat pumps. The Project will be the first DH project financed by the Bank in Ukraine that includes installation of heat pumps.
