Ukraine: EIB and E5P provide further support for refurbishment of Ukrainian hospitals

• A €1 million investment grant from the E5P multi-donor fund will fund energy efficiency refurbishments for regional hospitals in Ukraine. 
• This grant complements a prior €300 million loan from the EIB.

The European Investment Bank (EIB) and the Ministry of Communities and Territories Development of Ukraine have signed an investment grant agreement to further facilitate the implementation of Ukraine’s Public Buildings Energy Efficiency project (UPBEE) and contribute to much-needed energy efficiency efforts in the healthcare sector.

The agreement signed today call for a €1 million investment grant from the multi-donor Eastern Europe Energy Efficiency and Environment Partnership (E5P). This grant will support the implementation of energy efficiency measures in hospitals, including the installation of modern energy efficient equipment, ventilation and lighting systems, as well as interior heating in healthcare facilities. The ventilation renovations in particular will strengthen resistance to the COVID-19 pandemic in Ukraine and foster future resilience in the healthcare sector.

The grant complements a prior €300 million EIB loan aimed at increasing energy efficiency in 1 000 public buildings and benefiting 2.5 million people. The project will extend the operational life of key social, healthcare, administrative and cultural buildings by at least 20 years and reduce CO₂ emissions by 1.25 million tonnes. 

Oleksii Chernyshov, Minister for Communities and Territories Development of Ukraine, said: “Energy efficiency is among the key priorities of regional development in Ukraine for the coming years. I am sincerely grateful to the E5P multi-donor Fund for this grant support. It will greatly contribute to the implementation of Ukraine’s Public Buildings Energy Efficiency project, that will renovate some 1 000 public buildings. The focus of the grant on the healthcare sector is especially relevant during the COVID-19 pandemic. Now more than ever, it's important to create and develop infrastructure to support doctors and patients. We encourage local self-government bodies to submit their proposals for energy efficiency renovations to the Ministry for Communities and Territories Development starting in December 2021.”

Jean-Erik de Zagon, Head of the EIB Representation in Ukraine said: “Energy efficiency has a central role in tackling climate change that tops the EIB's list of priorities. We are glad to see Ukraine take much-needed strides towards an energy-efficient future. Thanks to substantial contribution by the donors of the E5P Fund, we are able to further support the energy-efficient refurbishment of public buildings in Ukraine. The donors’ support will directly help the Ukrainian healthcare sector to benefit from the upgrades, with new cooling systems and the integration of renewable energy sources and other COVID-19 response measures. Hospitals can contribute to a healthy planet through energy efficiency.”

Kateryna Stasiuk, E5P Principal Manager said: “The E5P donors are pleased to support this ambitious programme for energy efficiency improvements in public buildings across many small municipalities in Ukraine. The E5P support consists of €3 million for technical assistance and €1 million for investment. Hospitals and other healthcare facilities are among the most energy, water and other resource-intensive buildings with 24/7 high-energy consumption driven by strict requirements on the quality of the indoor environment and associated healthcare services. So far the E5P donors have provided close to €120 million in grant funds to 25 municipal projects in Ukraine with the overall investment volume exceeding €961 million. The European Union and Sweden are the two largest contributors alongside 14 committed donor countries including Ukraine. The E5P projects will directly contribute to the Environmental Security and Climate Change Adaptation Strategy of Ukraine until 2030 and the updated goals of the Nationally Determined Contribution (NDC).”

Background information

The EIB has worked with Ukraine since 2007. Ukraine has been the main recipient country of EIB support in the Eastern Neighbourhood, accounting for more than 60% of EIB lending activity in this region. The Bank focuses on social and economic infrastructure, transport and connectivity, local private sector development, energy efficiency, climate action and innovation. Today, the EIB is one of the largest investors in Ukraine with signed projects of about €7 billion.

The Eastern Europe Energy Efficiency and Environment Partnership (E5P) is a multi-donor and multi-international financial institution support fund created thanks to an initiative of the Swedish Presidency of the European Union in 2009. The E5P fund for Ukraine totals €137.5 million representing pledges made by the European Union, as the largest contributor, Sweden as the largest bilateral contributor to the fund, Germany, Norway, Switzerland, the United States, Denmark, Poland, Finland, Estonia, Iceland, Latvia, Lithuania, Ireland and Slovakia. Ukraine is also a donor to the E5P with €20 million. The E5P grants are used alongside the international financial institution loans to support municipal infrastructure investments that will boost Ukraine’s energy efficiency, while also having a beneficial impact on the environment and combating climate change.

The Ministry of Communities and Territories Development of Ukraine is the Ukrainian government ministry responsible for public housing infrastructure development.