Mykolaiv became part of the Revolver Fund of energy efficiency. What does this mean?

A house covered with cracks on Shneiersona Street in Mykolaiv. Archive photo of NikVesti for illustration

Mykolayiv City Council deputies supported the draft decision on joining the city to the program of the Revolving Fund of Energy-Efficient Cities.

The corresponding decision was made on October 30 during the session of the Mykolaiv City Council, write NikVesti.

The city must allocate 3 million hryvnias as a voluntary contribution to the fund, and the Department of Energy of the City Council must take this amount into account when planning the budget for the next year. However, in case of withdrawal from the program, the Board of the Association undertakes to return the contributions paid during participation within three months.

What does joining the Revolver Fund mean for Mykolaiv?

A revolving fund is a money fund created to finance certain projects, for example, energy efficiency in cities. Money from the fund is used for the implementation of projects, and then returned to the fund. Returned funds are used again to finance new projects, which allows you to constantly support new initiatives without additional costs.

It should be noted that joining the revolving fund should help local condominiums to obtain affordable loans for capital repairs and thermal modernization of buildings.

As previously noted acting Olga Havelia, director of the municipal institution «Energy Efficiency Center of the City of Mykolaiv», there are already applications from condominiums in the amount of more than 1.5 million hryvnias to participate in the program.

As part of this program, it is envisaged to introduce a competition for the selection of borrowers who will be provided with financial assistance. After considering applications from the heads of condominiums, a special commission will decide to whom and in what amount to provide funds. Condominiums can receive interest-free repayable financial assistance for a period of 12 months.

We will remind that in 2023 in Mykolaiv they planned to create a revolving fund for financing condominiums, the funds from which will be allocated for reconstruction projects. It was planned that international organizations and foundations would become sources of funding for the revolving fund.