E5P - EASTERN EUROPE ENERGY EFFICIENCY AND ENVIRONMENT PARTNERSHIP A presentation by Anders Henriksson Senior Special Adviser Ministry for Foreign Affairs Sweden

WHAT IS E5P ? A cooperation partnership between Ukraine and a number of international partners. Purpose: To promote investments and reforms, which increase energy efficiency and environmental protection in key areas, notably in the municipal sector Country coverage: The Partnership may at a later stage be enlarged to include other countries covered under the European Union Eastern Partnership initiative (countries such as Belarus, Moldova, Georgia, Armenia and Azerbaijan).

HOW WAS E5P CREATED ? The Northern Dimension Environment Partnership (NDEP) involving EU-partners, IFIs and Russian Federation served as inspiration and model for Swedish Government Swedish Government study early 2009 showed strong potential in municipal sector in Ukraine, in particular in district heating Preparatory process with IFIs, European Commission and Swedish Government worked out concrete proposal which was promoted during Swedish EU Presidency November 2009 Donor Conference in Stockholm set up E5P Fund and launched E5P

HOW DOES E5P WORK ? (I) Heart of Partnership is the E5P Fund of grant money managed by the European Bank for Reconstruction and Development (EBRD) E5P Fund resources can be used for: - investment grants to soften up financial package for investments - technical assistance grants to prepare projects and/or increase management capacity of beneficiaries When a participating IFI has worked up a proposal together with a Ukrainian partner, the IFI can apply to use the resources in the E5P Fund to finance part of the costs.

HOW DOES E5P WORK ? (II) The application is discussed in E5P Steering Group, where all participating IFIs, the Ukrainian Government and the European Commission are members. If Steering Group agrees, the application is sent to main E5P governing body, the so-called E5P Assembly of Contributors, where all donors are represented and have voting power in relation to their financial contributions to the E5P Fund. However, no operation in Ukraine will receive funding, if the Government of Ukraine does not agree with the proposal. In case of a positive decision by the Assembly, the grant from the E5P Fund will be handled by the IFI which put forward the application.

WHAT TYPE OF PROJECTS CAN RECEIVE E5P FUNDING ? First priority: investments and technical assistance measures in the field of energy efficiency, with strong initial focus on municipal sector – in particular district heating projects Secondary priority: investments and technical assistance measures in the field of environmental protection, with strong initial focus on municipal sector

HOW IS E5P FUNDED ? By a broad international coalition: 91 MEURO of grant funding over 5 years pledged to the E5P Fund by Donors: European Commission 40 MEURO, Sweden 24 MEURO, Ukraine 10 MEURO, Others (Denmark, Finland, Norway, US, Estonia, Latvia) 17 MEURO. Poland, Romania, Czech Republic, Slovakia and Japan considering to make contributions. Participating IFIs: European Bank for Reconstruction and Development (EBRD) European Investment Bank (EIB) Nordic Investment Bank (NIB) Nordic Environment Finance Corporation (NEFCO) World Bank Group (IBRD and IFC)

WHEN WILL THE FIRST E5P OPERATIONS GO AHEAD ? Later in WHERE CAN I FIND MORE INFORMATION ON E5P ? EBRD Office in Kiev Country Director: Mr. André Küüsvek 27/23 Sofiyvska Street KIEV Phone: Fax: