Changing the City: Chernihiv Experience of SEAP Implementation
The city of Chernihiv is a good example for replication as it has not stopped developing and changing for the better even in the country’s difficult times. The local authorities put a lot of effort into resolving the problems accumulated over the years, and in making the city more energy efficient, neat and comfortable for living. The development of the Sustainable Energy Action Plan (SEAP) for 2015-2023 in cooperation with the USAID Project and its adoption by the City Council has opened realistic opportunities for Chernihiv to attract investments for the implementation of energy efficiency projects and measures. A positive credit history, properly prepared applications to international financial institutions and clear business plans for each of the projects have all helped with attracting the attention of international financial institutions to Chernihiv.
Public Institutions Will Become More Comfortable and Economical
Due to the feasibility study developed by the USAID project, the city authorities filed an application to take out a loan from the European Investment Bank (EIB) project “Ukraine Municipal Infrastructure Development Program”, and it is planned to allocate these funds to energy efficiency improvements in educational and health protection institutions. Implementing the project will significantly decrease expenses for heating from the municipal budget, and allocation of the saved funds for the energy efficient modernization of municipal infrastructure objects. In addition, the building facades and interior finishing will have a more attractive appearance, and conditions for the city residents in them will become more comfortable. As energy intensive boiler houses will be closed down, and Chernihiv consumers will be reconnected, Chernihiv will be able to modernize the municipal district heating system. The municipality expects to take out a loan of € 7.1 million. Chernihiv’s application for financing has received a positive decision regarding the project eligibility criteria, and is waiting for the results of the consideration by the Ministry of Regional Development, Construction and Housing and Communal Services of Ukraine (second phase of selection) at the beginning of June.
The total amount of funding for energy efficiency measures in buildings from the local budget was UAH 18.8 million in 2016.
Comfortable Transport – Possibility to Lessen the Load on Roads and Improve the Environment
Ten new low-floor electric trolley-buses started operating on the routes of Chernihiv in 2016; five more will be purchased in 2017. The funds for the rolling stock upgrade (UAH 38.9 million) were allocated from the municipal budget.
The city filed an application for obtaining a subsidized loan under the EIB Program “Municipal Public Transport in Ukraine” worth € 6.1 million (the feasibility study was also prepared by the USAID Project). If the application is accepted, the city will confidently approach the fulfillment of one of the SEAP tasks – the procurement of 41 trolley-buses. In addition to the economic effect, this measure will also have an environmental effect – electric transportation will gradually substitute the low capacity buses that have become a significant environmental problem for almost all Ukrainian cities.
Walking the Streets Will Be Safer
The city started in 2016 a large-scale project on modernizing street lighting, which envisages the installation of 3,340 LED lamps to replace outdated and low-efficiency mercury lamps. The project value – UAH 8.7 million. In 2016, UAH 2.6 million was allocated from the municipal budget for this. It is planned that the project will be fully implemented this year. The installation of energy efficient street lighting will also have a significant social effect, as it will improve the comfort of people in the streets of the city, and will prolong the active hours for the residents and guests of Chernihiv who will feel safe when getting back home or to the hotel in the dark.
Chernihiv is open for cooperation with international and domestic financial institutions, while at the same time, municipal policy for attracting financial resources is pragmatic. If in view of the significant appreciation of the cost of loans in foreign currency the city considers terms of an agreement unacceptable, the project is postponed, or the city starts looking for a way to finance the project from the local development budget.
