1. European Investment Bank
Ukraine Early Recovery Framework Loan
Workshop for local and regional authorities
Kyiv, 23 June 2015
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2. Purpose and focus of the loan
Purpose of the loan:
EUR 200m multi-sector framework loan with the Government of Ukraine
acting through the Ministry of Regional Development ( MRD) targeting:
 small scale multi-sector infrastructure investments in the municipal and
social infrastructure sectors to cope with the consequences of the conflict,
and
 Investments helping to alleviate increased pressure on social infrastructure
and sheltering in order to ensure decent living conditions for internally
displaced people (IDPs) and host communities
EIB is financing 100% of project cost under this loan
Geographical focus:
 Government controlled areas of Donetsk and Luhansk oblasts (regions)
 Kharkiv, Dnipropetrovsk and Zaporizhzhia hosting influxes of IDPs
 other oblasts hosting significant influxes of IDPs
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3. 3

4. Final beneficiaries
 Central Government bodies of Ukraine
 Regional and City state administrations
 Bodies of local self-government
 State and communal enterprises (other than private
enterprises)
 Loan Fund Transfer Agreement to be concluded between
each final beneficiary, the Ministry of Finance, the Ministry of
Regional Development and for certain cases Regulator
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5. Programme structure
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TA support
(EPTATF,
EU Delegation in Ukraine)
EIB
MinRegion MinFin
PIU
Municipality Oblast Administration Utility or State Enterprise
TA cooperation
agreements Finance Contract
Loan Fund Transfer Agreements

6. Financial sustainability
Financing is supposed to be provided both to:
projects based on cost recovery principle;
social infrastructure projects.
Final decision regarding share of both abovementioned
groups will be taken by the GoU
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7. Eligible sectors and activities for Donetsk and Lugansk regions under
Government control
Sector Activity
Sheltering/Housing Recovery and upgrading of infrastructure (by which is meant tangible
facilities) for the temporary accommodation of internally displaced
persons; recovery or construction of heating systems; recovery,
improvement of the energy efficiency measures.
Water Supply and
Sanitation
Recovery and reestablishment of water supply, rationalization of use
of water resources; repairing and upgrading of networks, capitation,
pumping stations and treatment plants at regional and municipal
level.
Energy Electricity Recovery of electric power generation, transmission and distribution
at municipal and regional level.
District
Heating
Recovery of district heating generation, transmission and distribution.
Public Buildings Recovery and refurbishing of public buildings (hospitals, schools,
community centers, post offices providing financial services, public
administration buildings).
Recovery and improvement of energy efficiency in public buildings.
Transportation Recovery and reestablishment of connection roads, rail and bridges.
Recovery and reestablishment of urban transportation infrastructure
and pedestrian paths, and replacement of destroyed urban
transportation equipment.
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8. Eligible sectors and activities for other oblasts with focus
on IDPs
Heavy influx of IDPs and increased pressure on social infrastructure
and sheltering and social services
Sector Activity
Sheltering/Housing Recovery and upgrading of infrastructure for sheltering; recovery
or construction of heating systems; recovery, improvement of the
energy efficiency measures.
Social infrastructure Recovery and refurbishing of public buildings (hospitals, schools,
community centers, postal services providing financial services,
public administration buildings).
Recovery and improvement of energy efficiency in public
buildings.
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9. Costs not eligible for EIB
VAT and other taxes and duties
Land acquisition
Purchase of buildings
Maintenance and other operating costs
Acquisition of second-hand assets
Interest during construction
Purchases of licenses
Patents, brands and trademarks
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10. Information regarding sub-projects
 Sub-projects have to comply with:
 EIB Guide to procurement (http://www.eib.org/attachments/
thematic/procurement_en.pdf)
 Environmental and Social standards
(http://www.eib.org/attachments/strategies/eib_statement_esps_en.pdf)
 Approval procedures by the Bank:
 Ex-post for schemes below EUR 1 m
 Ex-ante for schemes between EUR 1 m and EUR 50 m
 Ex-ante individual appraisal and approval for schemes above EUR 50 m
 Any scheme for roads, rails and bridges regardless of size – to be
submitted to the Bank for ex-ante approval
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11. Information regarding sub-projects
Types of templates for screening the sub-projects:
 Project fiche for preliminary screening during 1st
call of proposals
Word and Excel templates are equivalents, for identification of 1st
list of potential sub-
projects under the programme
 Allocation tables for schemes with a cost less than EUR 1 m
 Project fiches for schemes between EUR 1 m and EUR 50 m
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12. Project fiche
for preliminary screening during 1st
call of proposals
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=
Project Fiche for
preliminary screening
Table of Project
Fiches

13. Templates, if the project has been selected
estimated costs < EUR 1 mln estimated costs >= EUR 1 mln
and < EUR 50 mln
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ALLOCATION
REQUEST
PROJECT FICHE

14. Information regarding sub-projects
 Social Management Plan (SMP) / Stakeholder Engagement Plan (SEP)
to be completed prior to 31.12.2015 by MRD in cooperation with
consultants
 MRD should identify 3-4 pre-selected sub projects with a diverse
geographic and sector coverage for the purposes of the analysis in
SEP/SMP by the consultants.
 MRD will procure that the final beneficiaries will implement the
Stakeholder Engagement Plan to ensure that all relevant projects are
planned, designed and executed after participatory consultation with
civil society (local representatives, NGOs and concerned citizen
groups)
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15. Timeline
The selection of sub-projects will be done by MRD in
consultation with MoF depending on the funding mechanisms of
sub-projects.
Screening and first selection of sub-projects shall be completed
by MRD on the occasion of next EIB mission in mid-July
Deadline for submission of allocation request by the Borrower:
31 December 2016 (might be extended for 1 year at demand if
required)
Projects are to be implemented over a 24-36 months period to
be completed not later than 2017
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16. Project implementation and TA support
 TA support during the timeframe of the framework loan - 3 years -
coming from EPTATF and EIB own resources
 Project Implementation Unit (PIU) within the MRD for managing the
programme, as a Working contact group for the stakeholders involved
(to be supported by EIB team of consultants)
 EIB specialist to be located in EIB office in Kyiv for the Bank’s
monitoring of the programme from September 2015
 Monitoring, supervision and advisory support at final beneficiary
level on project schemes (physical and financial implementation,
reporting, social and environmental compliance, procurement, civil
society participation) will be provided on case by case basis
 If required, loan can also be used to finance consultants and experts to
support the management, coordination, monitoring, planning,
design and supervision of the projects
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17. Technical assistance structure
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Ministry of Regional
Development
Loan PIU
Central administrations
Ministry of Finance
European Investment Bank
Regional administrations
Local administrations
Public utilities / State companies
Project entity TA / experts Role / activities
TA social instruments
Social expert / NGOs
Experts for PIU support
(located in PIU Kiev)
EIB officer
(Luxembourg / Kiev)
Monitoring of EIB loan operation (internal)
Approval of allocation requests
Coordination of TA and technical operations; risk assessment
Capacity development of PIU within promoter
Development of procedures and monitoring / reporting tools
Assessment and prioritization of investments (RPA)
Allocation requests
Check of compliance with procurement rules
Check of compliance with EIB environmental and social standards
Advisory for project design, engineering, costing / project supervision
Liaison with supervision teams
Monitoring visits / reporting to the Bank
Social Management Plan
Stakeholder Engagement Plan
Advisory support to local promoters
Quality assurance and supervision
(decentralised)
Advisory for project design, engineering, costing / project supervision
Stakeholder Engagement Plan
Quality of technical designs, construction works, construction materials
Review of project cost
Compliance with EIB environmental and social standards
Review of procurement
Financial monitoring
Compliance audits / EIB recommendations
Liaison with central PIU
Coordination,managementImplementation