EBRD provides EUR 50 mln loan to Kyivteploenergo for emergency support

The European Bank for Reconstruction and Development (EBRD) is lending EUR 50 million to the city of Kyiv. This loan will provide liquidity to the city's municipal district heating utility, Kyivteploenergo (KTE), and will help ensure the provision of vital municipal services in the city.

According to a press release from the EBRD, a first loss risk cover guarantee from the EU will cover 25 per cent of the loan. The EBRD loan will be co-financed by a EUR 5 million grant from the United States of America.

"This guarantee is vital to the transaction, helping the city and its key municipal utility to immediately address critical liquidity needs and ensure uninterrupted provision of essential public services," the bank said on Tuesday.

These emergency funds are expected to support repairs to the city's damaged infrastructure in preparation for the impending winter heating season and will provide liquidity to KTE, ensuring that it remains operational and can retain its existing workforce.

The EBRD said that Kyiv is Ukraine's main economic hub and has a registered population of around 3 million people, accounting for approximately 7 per cent of the total population of the country.

According to the press release, since February 2022 the EBRD has deployed a total of up to EUR 5.2 billion in Ukraine, of which up to EUR 1.4 billion this year, focusing on support for energy security, vital infrastructure, food security, trade and the private sector, in addition to key policy reforms.

As reported, the EBRD approved a EUR 50 million loan for KTE in September of this year.

Kyivteploenergo provides heat and electric energy to Kyiv. In the spring of 2024, the company's staff numbered more than 9,000 workers, ensuring the operation of the Kyiv thermal power complex. It includes two large thermal power plants, about 200 boiler houses, more than 2,700 km of heating networks and the Energia waste incineration plant.