1. UNDP - GEFProject: UKR/01/G31/A/1G/99 Climate Change Mitigation in Ukraine through Energy Efficiency in Municipal District Heating Pilot Project in Rivne

2. Main Items Major Barriers and Lessons learnt Best Practices Challenge for future

3. ACCESS TO FINANCE Strategic Priority #2 (UNDP/GEF Business Plan) : Goal: Creation of the Municipal Energy Service Company (ESCO)

4. Demonstration Project: Energy Efficiency and Economical effect Ecological (Environmental) Effect Social effect UNDP - GEFProject: UKR/01/G31/A/1G/99

5. MAJOR BARRIERS Inappropriate Institutional Approach Lack of Community Participation Absence of Local Capacity

6. INSTITUTIONAL APPROACH Project Initial Strategy – NEX SCEC (State Committee for Energy Conservation) Currently NEX – Local (Oblast) Administration Changes Introduced

7. INSTITUTIONAL CHANGES THE FOLLOWING CHANGES HAVE TAKEN PLACE: The Project management was moved to the local level; Oblast Administration was nominated a national executing agency and the State Committee dismissed from this responsibility. As Result the Project Support Office in Kiev was closed and Project Implementation Office in Rivne became to be the only Project office.

8. COMMUNITY MOBILIZATION Lack of appropriate Methodologies in Ukraine No prior experience and field work in practice

9. Lessons learnt : Selecting partners with capacity to understand and work with international assistance Success when local partners own and manage UNDP - GEFProject: UKR/01/G31/A/1G/99

10. Best Practices Mayor’s personal involvement and support Governor’s office support Sound and fruitful cooperation between municipality and business (Komunenergia) Community mobilization and involvement

11. During 2004 Capacity Building of the “ESCO-Rivne”:  ESCO Support Activities,  Strategic Business Plan for ESCO-Rivne  Energy Efficiency Plan for Rivne city launched Community Mobilization; Experience Dissemination and Replication country wide; Preparation to the Stage 2.