What are they EURO 1 billion municipal projects for infrastructure energy-efficient modernization ?

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What are they EURO 1 billion municipal projects for infrastructure energy-efficient modernization ?

Today, almost all Ukrainian cities have a formed portfolio of priority projects of infrastructure energy-efficient modernization.

According to the USAID 2016-2020 Investment Projects Register (the Register), the approximate costs of necessary investments for more than 497 projects in 16 Ukrainian cities are UAH 53,845.9 million (status for 2016 year), and half of them have feasibility studies, developed under the support of USAID. Such investments will not only contribute to the sustainable economic and energy-efficient development of the regions, but will also reduce CO2 emissions by thousands of tons.

According to the above-mentioned Register, housing sector occupies the first place in the number of programs and volume of necessary investments (UAH 15545 million), followed by state buildings (UAH 11025 million) and central heating system (UAH 8086 million). These sectors are interconnected with projects aimed mainly at heat modernization, energy efficiency and upgrading of central heating systems.

In addition, there are more and more projects on renewable energy. This sector is rapidly developing and provides great opportunities for foreign investors. In the Register of investment projects, such renewable energy projects are mentioned, in particular: the construction of the Kramatorsk wind park (150 MW capacity), collection and utilization of biogas at landfills in Kryvyi Rih (UAH 89.7 million); small-heat power stations and power stations working in rubbish in Sumy (850 million UAH).

Only a few projects deal with educational activities totaling UAH 10.9 million, landscape planning (UAH 86.5 million), solid waste utilization (UAH 532 million) and energy management (UAH 473 million).

Also, let’s pay attention to a more "fresh" Preliminary list of 22 municipal projects prepared for participation in the Municipal Infrastructure Development Program of Ukraine, which are waiting for confirmation of financing by the European Investment Bank. 22 projects, totaling EURO 475 million were selected in July-August 2017 to the previous list.

The list of 22 municipal projects is concentrated in the majority of five sectors (as a percentage of the total project cost):

  • centralized heat supply 29.4% (~ 140 million euros)
  • energy efficiency in public buildings 19.2% (~ 91.37 million euros)
  • street lighting 17.15% (~ 81.6 million euros)
  • water supply and wastewater  16.36% (~ 77.7 million euros)
  • management of solid household waste 17.86% (~ 70.23 million euros)

Conclusions:

Over EUR 1 billion is committed by various International Finance Institutions as investment into infrastructure on the annual basis. However, market participants often state that the cycle “from preparation to implementation” is too long. Even when financial resources and political will exist, it still takes long time, until public sees results in modernized public buildings, district heating facilities, wastewater treatment plants or other infrastructure objects. As the investment volume grows it is important to increase Ukraine’s absorption capacities in efficient project implementation

For this reason, European-Ukrainian Energy Agency is pleased to invite you to Energy Day. Policy Dialogue 2018: “Energy Efficiency From Idea to Implementation: How to Bridge the Gap?” which will take place on 11th of June, 2018 in Premier Palace Hotel, Kyiv.

Resources for the article:

  1. http://umip.org.ua/

  2. https://dec.usaid.gov/dec/search/SearchResults.aspx?q=KERvY3VtZW50cy5Eb2N1bWVudF9UaXRsZTooaW52ZXN0bWVudCkpIEFORCAoRG9jdW1lbnRzLkNvbnRyYWN0X0dyYW50X051bWJlcjooQUlELTEyMS1UTy0xMy0wMDAwNikp&qcf=ODVhZjk4NWQtM2YyMi00YjRmLTkxNjktZTcxMjM2NDBmY2Uy 

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