General Information
Program Description
Ukraine is actively implementing programs to encourage local governments to increase energy efficiency in public buildings that belong to the municipal property of the relevant territorial communities of Ukraine.
Stimulating the reduction of energy consumption, reducing local budget expenditures on the maintenance of real estate belonging to the relevant community, improving the operational and aesthetic characteristics of these buildings, creating comfortable conditions for visitors to such public buildings, and reducing the negative impact on the environment.
Strategic Case
Program Goal
Strategic Relevance of the Program
Program Objectives
Reduction of CO2 emissions
0 %
25 %
Reducing building maintenance costs
0 %
25 %
Economic Case
Program Components
Component ID
DREAM-1
thermal modernization of public buildings
Justification
The implementation of the program is envisaged through one component, which is aimed at major repairs and energy-efficient thermal modernization of public buildings, such as schools, kindergartens. Investments in thermal modernization of public buildings will contribute to a significant reduction in budget expenditures for thermal modernization of public buildings in the cities of Zhytomyr and Zaporizhia. Investments include investments in energy efficiency, structural repairs of the building necessary to extend its service life and make investments in energy efficiency, as well as limited investments not related to energy efficiency, which the Final Beneficiary can use more economically during renovation works. ▪ social: ensuring energy efficiency measures for public buildings, such as schools, kindergartens; ▪ expected number of direct users of services and facilities: comprehensive reconstruction of public buildings within the framework of this Project, and the buildings will be used; ▪ safety considerations: learning and working conditions in selected public buildings will be improved through comprehensive renovation; ▪ environmental benefits: improved energy monitoring and management concepts have been developed and implemented. Ukraine is one of the most energy-intensive countries in the world. As part of the decentralization efforts, starting in 2014, local authorities have experienced a significant increase in their financial accountability and, against this background, have sought to achieve the maximum possible energy savings. Utilities are typically provided in outdated, poorly maintained buildings. Thus, replacing these systems with modern technologies has significant savings potential. The overall goal is to contribute to the sustainable economic development of Ukraine, as well as local environmental and global climate protection. Unbalanced domestic energy consumption is an acute problem that has sharply negative economic and social consequences and limits the potential for improving the standard of living in Ukrainian cities. Municipal institutions are first in line for the implementation of energy efficiency projects, as the utility sector has enormous energy saving potential. Potentially, municipal institutions could save up to 60% of their current energy consumption. Once revealed, this potential will affect not only the implementation of technical energy-saving measures, but also the implementation of comprehensive organizational, educational and explanatory measures aimed at changing the culture of energy consumption. Reducing the consumption of fuel and energy resources in the municipal sector is considered as a way to reduce financial costs for energy purchases by municipal institutions, increase revenues to local budgets and improve social programs.
Year
Amount
1
865'097 UAH
2
357'801 UAH
Financial justification
Total estimated program cost
1'222'898 UAH
Estimated cost of program components
1'222'898 UAH
Component
Amount, uah
thermal modernization of public buildings
₴1'222'898
Sources and mechanisms of financial support for the implementation of programs.
Status
Funding mechanisms
Coverage, %
Investment
Non-repayable financing. Grant financing from existing international support projects, international technical assistance programs, and grants. Direct expenditures.
4%
Reimbursable financing. Debt financing. Loans borrowed by the state from foreign governments, foreign financial institutions, and IFIs
96%
Justification document
What potential funding sources can be mobilized on the basis of prior agreements or intentions to cooperate (if any)
Law of Ukraine "On Ratification of the Agreement between the Cabinet of Ministers of Ukraine and the Government of the Federal Republic of Germany on Financial Cooperation (Appropriations for 2012-2019)" dated June 15, 2021 No. 1552-IX; Order of the Cabinet of Ministers of Ukraine dated November 24, 2021 No. 1484-r "On Attracting a Loan and Grant from the Credit Institution for Reconstruction ("KfW") for the Implementation of the Project "Energy Efficiency in Communities" Loan and Grant Agreement between the Cabinet of Ministers of Ukraine, Zhytomyr City Council, Zaporizhzhia City Council and KfW, Frankfurt am Main ("KfW") (Project "Energy Efficiency in Communities"), which entered into force from the moment of its signing on 11/30/2021.
Management Case
Organizational Measures
Implementation of the program "Energy Efficiency in Communities"
24 months
Risk Assessment
Risk
Probability
Degree
Strategy
Risk
rising cost of building materials
Probability
Medium
Degree
Considerable
Strategy
Acceptance
Risk
insufficient qualifications for local government
Probability
Low
Degree
Considerable
Strategy
Avoidance
Risk
risk of lack of qualified personnel
Probability
Medium
Degree
Considerable
Strategy
Reduction