Municipal Project Support Facility

Municipal Project Support Facility

Municipal Project Support Facility

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Supporting cities with sustainable solutions

Saving energy is essential for our future. With this in mind, the European Investment Bank (EIB) is helping Eastern Partnership countries become more energy efficient, ensuring that their energy consumption is more sustainable and thus reducing greenhouse gas emissions.

With the Municipal Project Support Facility (MPSF), the EIB targets municipalities in the region which require increased investments in projects that provide sustainable municipal services whilst protecting and preserving the environment.

What is MPSF?

MPSF provides technical assistance to municipalities in Eastern Partner countries – Ukraine, Belarus, Georgia, Armenia, Azerbaijan and Moldova – to prepare and implement bankable, sustainable and economically viable projects. Officially launched in 2014 with an initial EU contribution of EUR 12 million, the MPSF is managed by a steering committee consisting of the EIB (Secretariat and Lead Delegatee body), the European Commission (EC), the European Bank for Reconstruction and Development (EBRD) and  Kreditanstalt für Wiederaufbau (KfW)

MPSF provides technical assistance to municipalities in Eastern Partner countries

The Facility aims to finance energy efficiency investment projects such as district heating, urban transport, street lighting and renewable energy as well as projects related to the water supply and sanitation and solid waste management.

Technical assistance support includes:

  • Project preparation – master plans, feasibility studies, energy audits, environmental and social impact assessments, designs
  • Project implementation – tendering process, supervision, commissioning
  • Project verification
  • Capacity building and institutional development

Discover some projects supported by MPSF

Armenia, Yerevan

Armenia, Yerevan

MPSF provided EUR 220 000 to support energy audits for public buildings, increase the capacity of the municipal authorities and prepare feasibility studies.

MPSF is helping the reconstruction of about 190 kindergartens, sports centres, schools, cultural centres and hospitals in Armenia.

Moldova, Chisinau

Moldova, Chisinau

The municipality of Chisinau benefited from a technical assistance support of EUR 235 500 to increase energy efficiency standards in public buildings.

MPSF will support the installation of thermal insulation, new lighting and solar water heating in about 120 public buildings in Moldova.



The Facility supports urban public transport projects in several medium-sized and large cities for a total amount of EUR 3 500 000.

MPSF will help purchase trolleybuses, trams, metro coaches and buses, rehabilitate the existing infrastructure and build new transport infrastructure.

And more projects in the pipeline

MPSF has so far approved technical assistance (TA) to the amount of EUR 11 780 000 for the preparation and implementation of municipal projects funded both by the EIB and the EBRD in the energy efficiency, urban transport and waste sectors. See the full list of approved all TA projects under MPSF.

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to improve public services?

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The EIB and the EU Eastern neighbours

The EIB operates in the Eastern Partnership on the basis of the 2014-2020 External Lending Mandate to support projects of significant interest to both the EU and the Eastern Partnership countries, in the areas of local private sector development, social and economic infrastructure and climate change. In addition, the Bank set up an own risk Neighbourhood Finance Facility for the period 2014-2020 to enhance its support for this region.

Read more about our operations in the Eastern Neighbourhood

Discover how the EIB helps increase energy efficiency investments within the Eastern Partnership countries.