International. Nordic Environment Finance Corporation (NEFCO)

Date of agreement:21 Dec 2017
Customer:Nordic Environment Finance Corporation (NEFCO)
Amount in EUR:EUR 30 million
Maturity:15 years
NACE sector / loan type:Construction

This loan contributes to climate change mitigation: 100%


The loan has been provided to NEFCO to be onlent to the Ministry of Finance of Ukraine to finance the refurbishment of existing teaching, research and supporting facilities at selected state higher education institutions in Ukraine with a view of improving their energy efficiency and making other limited non-energy efficiency-related educational investments. The objective is to reduce the running costs of the state higher education institutions and to improve the quality of teaching, learning and academic research facilities.  

Energy-saving techniques for each building are selected on the basis of an energy audit and include investments in the building envelope, heating and ventilation systems as well as lighting.

The project will be implemented in two phases. In the initial phase, energy efficiency improvements will be performed at seven universities in Kharkiv, Kiev, Lviv, Poltava, Chernihiv, Sumy and Vinnytsia. In the following phase, more universities will be selected for building renovation. The work is expected to start in 2018 and be completed by the end of 2022.

The total project cost is EUR 160 million. Besides this loan from NEFCO funded by NIB and partially guaranteed by the Swedish International Development Cooperation Agency, the project is financed with a loan from the EIB and grants from the Eastern European Energy Efficiency and Environment Partnership (E5P), the EU Neighbourhood Investment Facility and the Nordic Environmental Development Fund.

Fulfilment of NIB's mandate

The average improvement of energy efficiency and the total reduction of CO2 emissions due to the entire project can only be quantified once the universities participating in the programme have undergone energy audits. However, based on existing audits of three of the universities, the average improvement of energy efficiency is expected to be above 30% and the CO2 emissions are predicted to remain below 100,000 tonnes a year.

Sustainability summary

As the result of the project, the need for heating and electricity at the participating universities is expected to decrease, as are their CO2 emissions, which can only be measured after an audit. Soil contamination on the properties has not been investigated.

Press release

NIB loan to NEFCO to boost energy efficiency in Ukrainian universities

Press release

NIB on myöntänyt NEFCO:lle lainan energiatehokkuuden parantamiseksi ukrainalaisissa yliopistoissa

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