Oschadbank to Finance Modernization of Heating Systems at Five Educational Institutions in the Sarny Community

Oschadbank and the Sarny City Council have signed a loan agreement for UAH 7.4 million to modernise the heating systems in the community’s educational establishments. Seven modern air-source heat pumps and other related equipment will be purchased and installed from the loan funds.

The project aims to improve the energy efficiency of these institutions, reduce heating costs and ensure a stable heating supply throughout the heating seasons.

This funding will potentially be included in the loan portfolio under the DISTRICT HEATING programme - the one for financing local authorities and utility companies in the areas of district heating, energy independence and energy efficiency implemented by Oschadbank in partnership with the European Investment Bank.

New heat pumps will be installed at Sarny Lyceum No. 4, Sarny Art School, Sarny Gymnasium No. 3, Sarny Gymnasium No. 6 and Preschool Educational Centre No. 5 ‘Verbychenka’. The existing electric boilers are to remain in place - they will serve as a backup heat source, whilst the new heat pumps will handle the main load.

“Oschadbank has been working in strategic partnership with the European Investment Bank for many years, channelling the funding it raises towards supporting the development of local communities and the modernisation of their infrastructure. Today, Oschadbank’s share of the municipal lending market exceeds 64 per cent, and we fully understand the importance for communities of investing in the energy efficiency and reliability of critical infrastructure. The project in Sarny represents one such practical step: the installation of heat pumps will help reduce heating costs for educational institutions by approximately 2.7 times and improve their energy resilience,” said Natalia Butkova-Vitvitska, a Member of the Management Board of Oschadbank in charge of MSMB.

You can observe the economic impact of the project by looking at the example of Sarny Lyceum No. 4. Currently, the school is heated by electric boilers and consumes around 212 thousand kWh of electricity per year. Following the installation of heat pumps, the projected electricity consumption for heating should decrease to 78,5 thousand kWh, reducing costs from approximately UAH 2.66 million to UAH 986 thousand per year. Accordingly, the expected annual savings will amount to approximately UAH 1.68 million.

The total cost of the works at the lyceum amounts to UAH 2.6 million, whereas the estimated return period for the project, considering the loan repayments, equals approximately 2.1 years.

Oschadbank in collaboration with the European Investment Bank continues to support projects in Ukrainian communities aimed at modernising heat supply, improving energy efficiency and strengthening the energy resilience of local infrastructure.