The responsibility of communal utilities to ensure the uninterrupted work of municipal infrastructure is increasing, and with it the need for capital investment and working assets. Usually, utilities managers lack these funds. UKRGAZBANK has developed a phase-by-phase plan of interaction with communal utilities (during consideration of the credit projects and decision making), which fully takes into account the specifics of business activities in the sector. During the financial and economic analysis, donations from the state budget, the municipal development program, conducting of the relevant tenders, etc. will be taken into account. In addition, the bank supports energy efficiency projects in the communal sector, and ensures their financing at a lower interest rate.

The bank cooperates with International Financial Institutions and implements international lending programs.

In particular, the bank offers:

• financing for investment projects;
• working assets replenishment; and
• lending in the form of overdraft.

For example, the bank has provided financing for Kovelteplo communal utility in the amount of UAH 7 mln. to replenish working assets, including the purchase of eco fuel briquettes for 10 boiler houses that will supply heat to the residents in Kovel. Due to gas substitution, monetary savings (taking into account the current prices for energy carriers) are about UAH 2.65 mln. a year. The loan was given for 12 months with an individual repayment schedule which takes into account the seasonality of production, i.e. the month with the highest amount of funds received.

Financing terms:

Directions of financing:

• Construction of alternative energy sources
• Equipment procurement (elevators, etc.)
• Modernization of lighting systems
• Replacement of municipal transport rolling stock (buses, trolley-buses)
• Modernization of buildings and structures
• Road repairs
• Other goals

* may be increased
** from 10% per annum – under the lending program for the procurement of Belarussian equipment.