DANIDA BUSINESS FINANCE TO SUPPORT INFRASTRUCTURE PROJECTS IN UKRAINE
The Ukrainian Minister of Finance and the Danish Ambassador in Ukraine have signed a framework agreement, which will enable Danida Business Finance to support infrastructure projects in Ukraine. Investments will focus on water and wastewater as well as energy efficiency.
Danida Business Finance, which is managed by IFU, offers interest free loans with a substantial grant element for public sustainable infrastructure projects in developing countries against a state guarantee. The projects may have a budget of up to and even beyond EUR 100 million and will be implemented by Danish suppliers in cooperation with other partners.
Now, with a new agreement signed in Kyiv, Danida Business Finance extends to Ukraine.
Supplements the Danish Neighbourhood Programme
Danish support to Ukraine is made available through the Danish Neighbourhood Programme, DANEP, which supports a range of key reform areas such as anti-corruption, decentralisation, human rights, energy and labour rights. DANEP’s budget for 2017-21 is 72 million USD.
In the future Danida Business Finance can support the development cooperation between Ukraine and Denmark by providing financial means and cutting-edge technology solutions for sustainable infrastructure projects.
On the occasion of the signature, the Danish Ambassador in Ukraine, Ruben Madsen, stated: “… Ukraine needs access to capital to develop, and Danida Business Finance is one of the most generous soft loan schemes known globally. I am very pleased that Danida Business Finance is now made available to Ukraine.”
Focus on water and energy efficiency
Danida Business Finance’s cooperation with Danish partners in Ukraine is expected to focus on two main sectors: i) Water and wastewater ii) Energy efficiency. Both are sectors in which Danish companies possess extensive know-how and experience. Several potential projects on renovation of district heating systems and on wastewater treatment are already being studied.
“We are very pleased with this framework agreement between Ukraine and Denmark. The agreement allows Danida Business Finance to support large sustainable infrastructure projects in Ukraine. We look forward to developing projects which enable technology transfer within relevant sectors for the benefit of our project partners and the Ukrainian population,” said Annemette Ditlevsen, Investment Director in Danida Business Finance.