The USAID Municipal Energy Reform Project in Ukraine (USAID Project) has started working with the City of Pavlohad to develop a business plan for a project called Improving the Energy Efficiency of Government-funded Institutions in the City of Pavlohrad. The objective is to attract loan financing from the Nordic Environment Finance Corporation (NEFCO). Consultants of the USAID Project have conducted a quick test of city's eight government-funded institutions and prepared their proposals for implementing measures aimed at the comprehensive thermal modernization of those buildings, reconstruction of their internal heating and ventilation systems, and upgrade of lighting systems. These proposals will be used as a basis for the technical section of the business plan.

In addition, based on the gathered economic and financial information, a financial matrix is being prepared for assessing the borrowing capacity of the City as a basis for the economic and financial portions of the business plan. According to preliminary estimates, The city of Pavlohrad will be able to attract a total of up to UAH 15.6 million (up to UAH 10.4mn from NEFCO loan, and up to UAH 5.2mn as grant from the East European Energy Efficiency and Environment Partnership Fund (E5P)) in order to implement this project. The City of Pavlohrad will provide at least 10% of project cost as co-financing, i.e., UAH 1.7mn, minimum.