Limaye, Dilip R.Liu, Feng2016-03-012016-03-012015-09https://hdl.handle.net/10986/23799The Ukrainian government recognizes investing in energy efficiency (EE) as a pillar of its energy sector strategy for reducing reliance on imported natural gas, mitigating the financial and fiscal stresses of high energy costs, and supporting economic recovery and long-term growth. Major government initiatives have been or are being undertaken to scale up EE investments in industries and residential buildings, two of the largest final energy consumers. Efforts to support EE in the public sector also received a boost with the recent enactment of the energy service company (ESCO) law and amendments to the budget code to enable energy performance contracting. The municipal sector - which includes municipal buildings as well as municipal services such as public lighting, district heating, water and sanitation, solid waste, and public transportation - accounts for the lion’s share of final energy consumption in the public sector. Facilitating and scaling up municipal EE finance should be a key component of the government’s national EE support agenda. Creating a dedicated EE revolving fund (EERF) for the public sector - and focusing its initial efforts on financing EE renovation of municipal buildings - will fill a critical gap in municipal EE financing in Ukraine and help address perhaps the most pressing municipal EE investment needs of Ukrainian cities.en-USCC BY 3.0 IGOTARIFFSADMINISTRATIVE BURDENBORROWERBUSINESS OPPORTUNITIESFINANCINGDIRECT FINANCINGFLOW OF FUNDSINTERESTGUARANTEESFINANCIAL ASSISTANCEINTEREST RATEREVOLVING FUNDSTOCK MARKETCREDIT PROBLEMSREPAYMENTSREVENUESCAPACITY BUILDINGLOANCREDITWORTHINESSFEELOAN AMOUNTBORROWERSSUBSIDYPAYMENTSSAVINGINTERNATIONAL BANKCASH FLOWSLENDERBANK LENDINGBUDGETREVOLVING FUNDSMUNICIPAL BONDSREPAYMENT PERIODSINTERNATIONAL FINANCEAFFORDABLE COSTSOVEREIGN GUARANTEESSAVINGSFINANCIAL SUSTAINABILITYTECHNICAL ASSISTANCEPUBLIC-PRIVATE PARTNERSHIPFINANCIAL INSTITUTIONLOAN FUNDSMARKET DEVELOPMENTHIGH INTEREST RATESCOMMERCIAL BANKPARTIAL CREDITACCESS TO FINANCINGUNIONPUBLIC FUNDSINTEREST RATESPAYMENTFINANCIAL INSTITUTIONSDEBTLIMITED ACCESSFINANCING NEEDSFINANCIAL PRODUCTSLOAN REPAYMENTSLENDERSLOANSENTERPRISESSOCIAL DEVELOPMENTDEBT SERVICECAPITAL INVESTMENTSDONOR FUNDSPOOR CREDITBANK FINANCINGFINANCEBANKSCREDIT LINEDEBT FINANCINGCOLLATERAL REQUIREMENTSGRANTELIGIBLE BORROWERSINTEREST PAYMENTSCAPITALDIRECT LOANSSOVEREIGN GUARANTEELACK OF ACCESSACCESS TO FINANCEPRIVATE LENDERSBANKCREDITLOAN PROGRAMINVESTMENT BANKBOND MARKETREPAYMENTEXTERNAL FUNDSENTERPRISEDEBT SECURITIESCREDIT HISTORIESCOMMERCIAL LOANSPHYSICAL ASSETSMUNICIPAL BONDTRANSACTION COSTSESCROW ACCOUNTCREDIT GUARANTEESECURITIESCREDIT RISKAFFORDABLE FINANCINGINSTITUTIONAL REFORMBANK LOANCORPORATE DEBTCOMMERCIAL LENDERSSECURITYINVESTMENTCREDIT GUARANTEESRATES OF RETURNLACK OF KNOWLEDGECOMMERCIAL BANKSPUBLIC FACILITIESCOLLATERALINTERNAL FUNDSTARIFFCOOPERATIONFINANCIAL INTERMEDIARYREVENUECOMMERCIAL LENDINGINITIAL FUNDINGBORROWINGINVESTMENTSEXTERNAL FINANCINGFEESLACK OF INFORMATIONLOAN FACILITYCREDIT LINESGUARANTEEINITIAL INVESTMENTDEVELOPMENT BANKWorking PaperWorld Bank10.1596/23799