UNDP and Oschadbank sign memorandum to support Ukraine’s energy resilience and recovery

The United Nations Development Programme (UNDP) in Ukraine and Oschadbank have signed a memorandum of understanding, which opens up new opportunities for the development of energy resilience projects, the modernisation of critical infrastructure and the sustainable recovery of Ukrainian communities.

It is the first memorandum between UNDP and Oschadbank to combine financial instruments with technical expertise for the implementation of recovery projects.

The cooperation will contribute to the further modernisation of district heating systems, improved energy efficiency in public buildings, and introduction of decentralised and renewable energy sources in municipalities.

The agreement previously concluded between Oschadbank and the European Investment Bank under the Ukraine Investment Framework provides for additional resources for the development of municipal projects in the field of district heating and energy efficiency. In its turn, UNDP will provide technical support in preparing and implementing such projects under the memorandum signed with Oschadbank.

In addition to supporting specific projects, the memorandum paves the way for long-term cooperation in the field of sustainable recovery. It involves the development of new financial and guarantee instruments for energy efficiency and energy projects, attracting supplementary financing for ‘green’ recovery, as well as strengthening international cooperation, exchanging experience and supporting the sustainable development of communities and the utilities sector.

Combining Oschadbank’s financial capabilities with UNDP’s expertise creates a comprehensive approach that will help communities move faster from ideas to the implementation of critically important projects.

Auke Lootsma, UNDP Resident Representative in Ukraine, noted that Ukraine’s recovery requires solutions that are both technically sound and financially viable.

“Today the key challenge is not only access to financing, but also turning it into investment-attractive projects. This partnership combines project preparation and financing, and brings in new financial instruments, thus helping communities move faster from an idea to its implementation,” he said.

Yurii Katsion, Chairman of the Management Board of Oschadbank, noted that supporting Ukraine’s recovery by financing critical infrastructure and energy efficiency is one of the bank’s key priorities.

“Oschadbank is the market leader in municipal financing. Thanks to our collaboration with UNDP, we will be able to expand the range of financial and guarantee instruments available to local communities. We understand the scale of current challenges, and by engaging international partners such as UNDP, we will strive to make our support more substantial and strengthen the communities’ capacity to implement large-scale recovery projects,” said Yurii Katsion.