1. Financing investment projects through E5P Brussels, 23 April 2015 This Partnership is implemented by the following Implementing Agencies This Partnership is implemented with contributions from

2. Eastern Europe Energy Efficiency and Environment Partnership What is E5P? Multi-donor Fund Established in 2010 to operate in Ukraine and other Eastern Partnership countries (Armenia, Azerbaijan, Belarus, Georgia and Moldova) Purpose of the Fund E5P Fund gives INVESTMENT grants for municipal sector projects to cut CO 2 emissions and protect the environment How it works Donor contributions are used as grants to leverage loans for investment projects from the participating financial institutions

3. Financial Resources of the E5P Fund Total €168m Current Status: E5P grants of €58 m approved for 15 projects with total investment cost of €285m NOW TENDERING Armenia joined on 17/03/2015 First meeting to select projects 26/05/2015 in Yerevan Georgia joined on 5/12/2014 First meeting to select projects 12/05/2015 in Tbilisi Moldova joined on 16/10/2014 First meeting to select project summer 2015

4. Typical E5P projects District heating projects Energy efficiency in public buildings (schools, hospitals, kindergartens) Energy saving measures in residential housing Renewable energy (including biomass boilers) Water and wastewater projects Solid waste projects Public transport projects (buses, trolleybuses, metro) Street lighting projects

5. Mechanism of E5P financing Case study: Zhytomyr District Heating in Ukraine Zhytomyr City Council Zhytomyr District Heating Company E5P grant €5 million EBRD loan €10 million Passed-on through the EBRD Government of Ukraine Passed-on LOAN and GRANT Total €15m Public Service Contract Approval of Municipal Guarantee Client

6. Where do E5P projects come from? Criteria for E5P grant allocations E5P grants go side by side with loans from the participating IFIs Grants need to be approved by the E5P Contributors (the European Union and the donor countries) Grants only given to municipal sector clients Preference for investment grants (technical assistance grants from the MPSF or IFIs own bilateral funds) Maximum grant level: half of the loan value Minimum project size: EUR 5 million Via participating International Financing Institutions Via Country representatives to E5P (Ministries)

7. Covenant of Mayors cities in Ukraine which are involved in E5P

8. For further information on E5P: Anders Lund, Fund Manager E5P lunda@ebrd.com Tel: +44 20 7338 7031 lunda@ebrd.com Ewa Manik, Associate Manager E5P manike@ebrd.com Tel: +44 20 7338 7196 manike@ebrd.com For further general info, please visit www.e5p.eu