Today's signing of the Financial Agreement between Ukraine and the EU on granting a EUR 50 million irrevocable financial aid by the EU to ensure rollout of the Energy Efficiency Fund provides for a full-fledged start of its activity. This proves unwavering support of the European Community for energy efficiency reform, which is a priority for Ukraine. I am grateful to the European Commission for the support and cooperation, announced Vice Prime Minister/Minister of Regional Development, Construction, Housing and Utilities of Ukraine Hennadii Zubko during the ceremony of signing of the Agreement on April 18.
On behalf of Ukraine the document was signed by Hennadii Zubko, on behalf of the European Union is by Peter Wagner, Head of the Support Group for Ukraine at the European Commission, Directorate-General for Neighbourhood and Enlargement Negotiations.
"The signing of the Agreement has become a result of hard joint work of the Government team, international partners, the Ukraine’s Parliament and experts. From the beginning of cooperation of the Ministry of Regional Development, Construction, Housing and Utilities with the Government of Germany and the European Union in November 2015, due to joint endeavours, we managed to "modernize" Ukraine's legislation in energy efficiency sector. There were passed basic laws, such as "On the Peculiarities for the Realization of a Right to Property in a Multi-Apartment Building", "On the Energy Efficiency Fund", "On the Energy Efficiency of Buildings", "On Commercial Accounting for Thermal Energy and Water Supply", the new Law "On Housing and Communal Services". A powerful legal framework for a large-scale thermal modernization of the residential sector throughout the country was developed. By the end of this year, we must, apart from launching the Energy Efficiency Fund, which will provide the population with an effective financial mechanism for the thermo-modernization of residential buildings, also adopt all necessary regulations so that to ensure in 2019 the Fund’s operation at full capacity", said Hennadi Zubko.
The Vice Prime Minister stressed that the EU assistance to the tune of EUR 50 million is not one-off. A five-year EU support for the Fund's programs has been planned. Next year, the EU can provide another sum worth EUR 50 million. Moreover, the Government of Germany expresses readiness to sign an agreement with IFC (International Finance Corporation, a member of the World Bank Group) on an additional EUR 10 million contribution to the Multi-Donor Fund for co-financing the Fund's projects. Besides, the Government of Germany also agreed to implement the technical assistance project in Ukraine on the training of professional energy auditors and training of employees of the Ukrainian Energy Efficiency Fund worth EUR 4 million. "The European Union, as a partner, expresses preparedness to accompany the Fund throughout five years. The technical support for the Fund is of topmost importance for us. This is a very complicated work that will result in shaping a roadmap not only for auditors and project organizations, but also a handbook that will provide clear explaination of the whole procedure for households. We welcome the participation of IFC in the activities of the Fund. The aforesaid agreement must be signed at the end of this week. This organization with impeccable reputation will ensure the organization of the Fund's activities in line with the best international standards and with maximum transparency and clearness for all shareholders", noted Hennadii Zubko.
The financing agreement will come into force from the date of its signing.
It should be noted that the Energy Efficiency Fund is a progressive and comprehensive tool for financing energy efficiency in the residential sector throughout the country. The Fund's programs will focus primarily on energy efficiency measures in housing cooperatives. The Fund's activity is also aimed at implementing the Ukraine-EU Agreement and ensuring by Ukraine compliance with international obligations assumed in the sector of energy efficiency. The Fund is set up with the support of international partners - the EU and Germany. For the current year, the financing from the State Budget worth UAH 1.6 billion for the Energy Efficiency Fund was planned.