PPP Unit Approves First PPP on Biofuel Project

Energy efficiency

Malyn, a city of 27,000 in Zhytomyr Region, plans to use renewable biofuel to heat schools. Condensed straw pellets produced from agricultural waste can be used to replace non-renewable energy sources, thereby saving costs and reducing carbon emissions. Photo: Simone

A major milestone was achıeved on October 30 when the MOEDT’s PPP Unit approved its first PPP project, the Malyn Municipal Heating with Renewable Energy PPP. The decision clears the way for Malyn to proceed with the competıtıve tender, which it plans to announce in November.

The PPP Unit, which was established within the MOEDT with P3DP support, plays an important role in PPP development in Ukraine. In addition to defining Ukraine’s policy on PPPs, it mapped out a methodology that ensures that potential private sector partners will have key information necessary for participating in tenders. This includes technical, legislative and market reviews, environmental and social impact assessments, and a financial model. The PPP Unit also ensures that the proposed PPPs adhere to Ukrainian legislation and result ın brıngıng value to Ukraınıan cıtızens. The Unıt’s involvement in the PPP process increases confidence in the project’s transparency, viability, and bankabılıty.

The Malyn project is on track for becoming Ukraine’s first clean energy PPP.  Malyn, a city of 27,000 in the  Zhytomyr Region, plans to use renewable biofuel to heat schools, which will reduce energy costs by about 10 percent and reduce carbon emissions by 11,000 metric tons. Over 1,600 children will benefit from more reliable heating, while enabling the city to strengthen its environmental and financial resilience in the face of budget constraints. Local businesses will also benefit.

P3DP will continue its work with Malyn officials in preparing the stakeholder communıcatıon program and package of tender documents. It will also continue its work with the MOEDT to build the knowledge and skills it needs to assess and support future PPP projects.