In today’s context there is a lack of local government self-government resources, in particular for infrastructure development projects. In view of this, the role of external borrowing from international financial institutions (IFIs) and foreign state financial institutions substantially increases. They have the opportunity and desire to finance local development projects and are a reliable source for the development of local infrastructure. Unlike Ukrainian lending banks, the cost of borrowing from such lenders is significantly lower, and the timing is longer. As a result, borrowing from the IFIs and foreign state financial institutions in modern terms is a real source of financing for urban infrastructure development projects.
In accordance with the second paragraph of Article 16 of the Budget Code, local external loans can be made by all city councils by obtaining loans (loans) from international financial organizations.
According to the Charter of the communal enterprise “Kremenchug Municipal Energy Service Company” of the Kremenchug City Council of the Poltava region, its owner and founder is the territorial community of Kremenchuk in the person of the Kremenchug city council of the Poltava region.
The enterprise is functionally subordinated to the authorized management body – the department of energy management and energy of the executive committee of the Kremenchug city council of the Poltava region.
The enterprise is the responsible executor of the project “Energy efficiency improvement of public buildings in Kremenchug” in accordance with the decision of the Kremenchug city council of Poltava region dated 21.12.2017 “On approval of the project ” Increasing the energy efficiency of public buildings in Kremenchug “, the purpose of communal the Kremenchug Municipal Energy Service Company , responsible executor and assent to the conclusion of a loan agreement with the European Bank for Reconstruction and Development under the the Kremenchug City Council and the conclusion of a grant agreement »
The decision of the Executive Committee No. 48 dated January 22, 2018 “On approval of the conclusion on the appropriateness of attracting a loan from the European Bank for Reconstruction and Development for the implementation of the project” Improving the energy efficiency of public buildings in Kremenchuk “under the guarantee of the Kremenchug city council of Poltava region”, the conclusion was approved the expediency of attracting a loan from the EBRD for the implementation of this Project under the guarantee of Kremenchug city council.
The overall objective of this Project is to implement energy saving (EEZ) measures aimed at reducing energy consumption and maintenance and maintenance costs (ETO) as well as reducing CO2 emissions, which selected 66 budget objects (38 kindergartens , 22 schools, 5 hospitals and the House of children and youth creativity). In addition, the project should improve the conditions for studying and staying in school classes for more than 17,000 students, 7,000 children in kindergartens, as well as the conditions for heating and a comfortable indoor climate for medical institutions for 2 400 patients a day.
and purpose of the business is energy efficiency projects using funds from international financial organizations for major renovation of buildings public sector.
CE “Kremenchuk Municipal Energy Company” will hold financial and investment investment calculations, their technical support, transparent procurement, prepare the necessary reports for banks and investors to international standards, to carry out monitoring of energy consumption level buildings to renovation and after.
Enterprise was established by decision of the City Council Kremenchug Poltava region on November 16, 2017 “On creation of the municipal enterprise” Kremenchuk Municipal Energy Service Company “Kremenchug city council of Poltava region.”