EECU offers its member to use the Revolving Fund financial instrument

The Revolving Fund for Cities uses a mechanism of repayable financial assistance, whereby community budget funds are transferred to designated legal entities as a free repayable loan through the EECU. In this way, funds can be used by many borrowers in a certain order. 

By using the RF, local authorities can help homeowners implement energy efficiency measures or modernise their homes, and OSMD can better interact with the Energy Efficiency Fund (EEF). In particular, communities can provide some financial and organisational support for the participation of their OSMD in the EEF's ENERGODIM programme.

As a result of the hostilities on the territory of Ukraine, communities have limited financial resources, as their main efforts are directed towards recovery programmes. Communities also face challenges related to high energy prices (primarily for natural gas) and limited lending opportunities, despite high interest rates. The EECU RF can help communities in such circumstances.

The EECU has implemented the RF using targeted community contributions, internal resources and is seeking grant support (primarily for the administration of the RF) to cover more cities that wish to use this financial instrument.

Specific features of using the RF instrument through the EECU:

• The Association provides conditions for the full use of the RF funds within the resources received from the community (if possible, grant funds are also attracted).
• The community funds transferred to the RF by EECU are used only for the needs of this community and only in accordance with the decisions of the relevant tender commission established by the community leadership.
• The RF is administered by the Association at its own expense, unless otherwise decided by the communities.
• The RF is used to modernise the community's housing stock in particular and to implement the Sustainable Energy and Climate Action Plan in general. The RF can be used by various legal entities, including OSMD and municipal enterprises. 
• If the community decides to withdraw from the RF programme, the Association, in compliance with the budget legislation, will refund all funds paid by the community as voluntary contributions to the EECU RF for the entire period of participation in the programme.

Steps to implement the RF mechanism in the community:

1. The local community council decides to participate in the EECU RF programme.
2. The community (on the basis of the decision to participate) and EECU draw up an agreement on the payment of voluntary membership fees to the EECU RF.
3. The local council may adopt a separate programme to support the community's housing sector.
4. The local council of the community makes a budget decision on voluntary membership fees for participation in the EECU RF programme.
5. The community leadership establishes a selection committee to select users of the reimbursable financial assistance (RFA).
6. The community transfers contributions to the EECU RF (the amount and frequency of contributions to the RF is determined by the community).
7. The established tender committee selects the users of the RF (loaner).
8. The EECU enters into a reimbursable financial assistance (RFA) agreement with the selected user (loaner).
9. The RFA funds from the EECU are transferred to the borrower's account (e.g., condominiums).
10. The RFA funds from the loaner's account are transferred to the recipient according to the designated purpose.
11. Funds from the loaner are transferred (returned) to the EECU RF according to the repayment schedule established by the agreement.
12. EECU transfers the funds to the next borrower according to the steps described above.

For additional information on the use of the EECU RF, please contact the EECU Executive Directorate (office@enefcities.org.ua tel. +38 032 2455 262) or contact the Programme Manager Serhii Kosharuk (skosharuk@enefcities.org.ua tel. +38 050 3782 013).

Let's join forces for sustainable energy development and climate change in Ukrainian communities!