The European Bank for Reconstruction and Development (EBRD) is providing Kyiv with a EUR 50 million loan to ensure liquidity for the municipal enterprise "Kyivteploenergo" ("KTE") and to carry out its functions in providing heat to the capital.
According to the EBRD announcement, the loan is backed by a guarantee from the European Union, covering 25% of its amount, as well as a EUR 5 million grant from the United States.
"The EU guarantee against first loss will cover 25% of the loan amount and is extremely important for this transaction, which will help the city and its key municipal enterprises immediately meet critical liquidity needs and ensure the continuous provision of essential public services. The EBRD loan is accompanied by a grant from the US amounting to EUR 5 million," – the bank's statement on its website said on Tuesday.
It is noted that the EBRD loan will assist in repairing the city's damaged infrastructure in preparation for the heating season and will provide liquidity to "KTE," allowing it to continue its operations and retain its staff.
The EBRD highlights that Kyiv is the main economic hub of Ukraine, home to approximately 3 million people, or 7% of its population, and serves as a center for international diplomatic activity and coordination of humanitarian assistance for the entire country.
The release mentions that since February 2022, the EBRD has provided over EUR 5.2 billion to Ukraine, including up to EUR 1.4 billion this year, with a focus on supporting energy security, critical infrastructure, food security, the private sector, and key reforms.
As reported, the EBRD approved the EUR 50 million loan for "KTE" in September of this year.
The municipal enterprise "Kyivteploenergo" supplies thermal and electric energy to the capital. In the spring of 2024, the workforce of the enterprise numbered over 9,000 employees who ensure the operation of Kyiv's thermal energy complex. It includes two large thermal power plants, around 200 boiler houses, more than 2,700 km of heating networks, and the waste incineration plant "Energia."