The United Nations Development Programme (UNDP), in the course of the UNDP Assessment Mission on the ESCO project, organized a roundtable with representatives of the banking sector for discussing barriers in the development of ESCO projects in Ukraine and ways to overcome them. JSC «CIB», which was the first in Ukraine to launch financing of the ESCO projects market, joined this event.
The roundtable was organized with the aim of expanding the mechanisms of implementation of energy-saving service, as well as overcoming financial barriers to the development of the ESCO market in our country. The UNDP representative was the senior adviser on ESCO project management and financial mechanisms, Mr. Louis-Philippe Lavoie.
From «Commercial Industrial Bank», the Director of the Department of Factoring, Documentary Operations, and Trade Finance, Dmytro Chornyi, was present at the roundtable. He shared the successful experience of financing ESCO projects of JSC «CIB», provided his recommendations to partners from other banks and financial institutions.
We remind you that JSC «CIB» was the first in Ukraine to carry out financing of ESCO contracts using factoring. The Bank has developed the most optimal model of financing ESCO projects using this instrument. The principal achievement is that this model allows providing financing without pledged property. By the way, financing of ESCO projects – is only one of more than 15 directions of application of factoring as a financial instrument, since JSC «CIB» installs factoring into the business processes of a specific client, adapting it to individual requests.
Background:
Joint-Stock Company «Commercial Industrial Bank» and the United Nations Development Programme (UNDP) cooperate in the sphere of financing energy efficiency and renewable energy programs. In January 2019, a Memorandum of partnership was signed between JSC «CIB» and UNDP.
Within the framework of the signed document, the parties implement the project «Removal of barriers to attract investments in increasing energy efficiency of public buildings in small and medium cities of Ukraine based on the ESCO model». The aim of the project is the implementation of European energy consumption standards and the creation of comfortable conditions of stay in public buildings.
The parties carry out information-consulting, expert-analytical, other cooperation and coordination of actions for the implementation of joint projects, programs, measures aimed at the development of energy saving, energy efficiency, «green» energy, and the building of necessary infrastructure in these spheres.
