Project Implementation Unit for the City of Dnipropetrovsk

Ukraine has done much in recent years to reduce its energy intensity. However an area where there is still a lot to be done is in public sector buildings such as town halls, hospitals, schools, kindergartens, as well as street lighting. Wasted energy resources create a significant burden on municipal budgets and inadequate heating and uncomfortable environment for vulnerable groups that rely on public institutions for their care.

Energy Performance Contract (“EnPC”) is a form of public private partnership whereby the public authority tenders efficiency projects, selects a private firm (usually an ESCO) to undertake specified energy saving investments with guaranteed savings. These investments are repaid from the energy savings.

The City of Dnipropetrovsk (“Dnipropetrovsk” or the “City”), with support of the EBRD, has been developing pilot projects for improving the energy efficiency in public buildings in Dnipropetrovsk by implementing EnPC projects. Developing and implementing EnPC projects in Dnipropetrovsk will establish and test the required legal and commercial infrastructure for successful implementation and replication of EnPC projects throughout Ukraine.

Up to now the following milestones have been achieved:

EnPC model contract has been drafted;

• EnPC projects with a total investment volume of approximately EUR 6.7 million have been identified in the city of Dnipropetrovsk already, all of which have been prepared up to being tendered;

• Different key staff members of the City have a good understanding of EnPC;

• Procurement documents and procedures for these projects according to EBRD Procurement Policy and Rules are close to being concluded.

Source: www.devex.com