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EBRD issues €10 million to Ternopilmiskteplokomunenergo

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Sept. 28, 2012, 3:57 p.m. | Business — by Interfax-Ukraine

The European Bank for Reconstruction and Development (EBRD) has issued a loan of EUR 10 million to Ternopilmiskteplokomunenergo under full municipal guarantees under a pilot project to modernize Ternopil's central heating system.
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The European Bank for Reconstruction and Development (EBRD) has issued a loan of EUR 10 million to Ternopilmiskteplokomunenergo under full municipal guarantees under a pilot project to modernize Ternopil's central heating system. 

The parties signed a relevant credit agreement in Kyiv on Friday.

"The term of crediting is 13 years, the interest rate is 5.9% per annum. The payback period of such projects in the field of heat supply is now five or seven years," head of Ternopil City Council Serhiy Nadal said at a press conference in Kyiv following the signing of the agreements.

The Eastern Europe Energy Efficiency and Environment Partnership (E5P) is expected to provide funds for the project in grants of EUR 5 million.

According to Nadal, the project implementation will allow the saving of up to 15% of the volume of gas consumed in Ternopil (about 270 million cubic meters per year), and about EUR 3 million per year.

Ternopilmiskteplokomunenergo Director Andriy Chumak said that the expected level of growth of heat supply tariffs for the public in connection with the raising of the loans would be about 7%.

"But now the prices are growing not at the expense of loans, but due to the cost of gas. Our company is one of those that has the lowest projected growth [in heat tariffs] in Ukraine - about 25%," he said. 

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