Ukraine: More than €13 million to renovate Ukrainian universities

This article is published in association with IMF.

• As part of the EIB’s Ukraine Solidarity Urgent Response package, a €10 million European Union-guaranteed loan is being directed towards energy efficiency upgrades at 16 universities across Ukraine.
• Poltava National Technical University is the first to complete renovations of two educational buildings, improving sustainability and reducing energy consumption, with further upgrades underway.
• As part of a separate €10 million grant provided by the E5P Fund in support of this project, €3.25 million will be utilised to further advance the Ukraine Higher Education Project, supporting construction at Poltava University and other selected institutions.

As part of the European Union’s efforts in Ukraine, the European Investment Bank (EIB), has come together with the EU Delegation to Ukraine and other partners to support the resilience of the country’s education sector. Within its Ukraine Solidarity Urgent Response package, the EIB is providing €10 million in EU guarantee-backed funds to enhance the energy efficiency of Ukrainian universities in the cities of Chernihiv, Ivano-Frankivsk, Kharkiv, Kyiv, Lutsk, Lviv, Odesa, Poltava, Rivne, Sumy, Uzhhorod and Vinnytsia.

Poltava National Technical University, one of the participating universities, has completed energy efficiency upgrades on two buildings: an academic building and a dormitory. These are the first of 16 planned upgrades at the university, featuring thermal insulation, modern heating and ventilation systems, and improved accessibility to enhance comfort, reduce energy consumption and lower operational costs.

The inauguration of the upgraded buildings at Poltava University took place alongside events organised as part of the EU Delegation to Ukraine’s “Together We Learn and Grow” communication campaign. During the ceremony, representatives from the EU Delegation and the EIB reaffirmed their commitment to supporting higher education in Ukraine and highlighted the impact of a previous, €3.15 million EU grant, which was used as technical assistance to advance energy efficiency improvements in universities.

Six selected universities, including Poltava University, are also being supported by a grant from the Eastern Europe Energy Efficiency and Environment Partnership (E5P) Fund, which recently provided €3.25 million to advance renovations. Poltava University has already begun construction using these funds, and by year-end, construction is expected to begin on two buildings at Sumy State University. By early 2025, all six universities benefiting from the E5P grant are expected to have their renovations underway.

EIB Vice-President Teresa Czerwińska, who is responsible for the Bank’s operations in Ukraine, said: “Strengthening the resilience of Ukraine’s education sector is critical not only for its immediate recovery but also for investing in the country’s future. By modernising university infrastructure, we are helping to build a foundation for developing human capital, ensuring students and staff have access to safer, more sustainable, and energy-efficient facilities. These efforts reflect the European Investment Bank’s commitment to supporting Ukraine during challenging times and beyond, as education is a cornerstone of long-term development and prosperity.”

Chargé d’Affaires a.i. of the EU Delegation to Ukraine Rémi Duflot added:“The EU remains steadfast in its commitment to supporting Ukraine’s education sector, particularly efforts to modernise its facilities. These energy efficiency upgrades, that we support in collaboration with the EIB and E5P, demonstrate how EU-backed initiatives are enhancing energy efficiency and creating safer, more sustainable campuses for Ukrainian students, even in the face of ongoing challenges.”

Associate Director, Donor Partnerships at EBRD Ewa Manik said:“The Contributors to the E5P Fund are proud to allocate a €10 million grant to advancing energy efficiency in Ukraine’s higher education sector. By supporting renovations in universities, we are not only reducing energy consumption and operational costs, but also creating more sustainable and resilient educational environments. These efforts are a testament to the power of collaboration and the shared commitment of the E5P contributors to Ukraine’s recovery and future development.”

Deputy Minister of Education and Science of Ukraine Vitrenko Andrii said: “This project demonstrates how support from the EU is enabling the modernisation of our universities, even in the challenging context of war. Energy-efficient upgrades reduce costs and create safer, more resilient spaces for students and staff. The Ukraine Higher Education project plays a vital role in sustaining and strengthening our higher education system as part of the country’s recovery and future development.”

Rector of the National University Yuri Kondratyuk Poltava Polytechnic Volodymyr Onyshchenko concluded: “The completion of the first two energy-efficiently modernised buildings at our university is a significant milestone. As the first institution among 16 participating universities to finish construction, we are proud to lead the way in advancing sustainability and improving infrastructure for our students and staff.”

Background information

The Ukraine Higher Education project aims to enhance the energy efficiency of 16 Ukrainian universities by refurbishing teaching, research and supporting facilities. This effort supports the recovery of higher education infrastructure as part of the country’s broader reconstruction initiatives. Thermal refurbishments of 13 universities are funded by a €120 million loan from the EIB, with €50 million specifically reallocated to provide urgent support to Ukraine in 2022. The project is also co-financed by the Nordic Environment Finance Corporation (NEFCO) with loans to a total of €12 million for another three universities. In addition, six out of 16 participating universities will receive €10 million in grant funding through the Eastern Europe Energy Efficiency and Environment Partnership (E5P) Fund. To facilitate the project’s implementation, the European Commission also provided €3.15 million in technical assistance. This funding was used for project coordination, conducting energy audits, and preparing documentation and procurement according to international standards at the university level. The Ministry of Education and Science of Ukraine is coordinating the implementation of the project.

The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives. EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner in the Global Gateway. We aim to support €100 billion of investment by the end of 2027, around one-third of the overall target of this EU initiative. With Team Europe, EIB Global fosters strong, focused partnerships, alongside fellow development finance institutions and civil society. EIB Global brings the Group closer to people, companies and institutions through our offices around the world. 

Eastern Europe Energy Efficiency and Environment Partnership (E5P) is a multi-donor and multi-international financial institution support fund created thanks to an initiative of the Swedish Presidency of the European Union in 2009. The E5P fund for Ukraine totals €249 million, representing pledges made by the European Union, as the largest contributor, Sweden as the largest bilateral contributor to the fund, Germany, Norway, Switzerland, the United States, Denmark, Poland, Finland, Estonia, Iceland, Latvia, Lithuania, Ireland and Slovakia. Ukraine is also a donor to the E5P, providing €20 million. The E5P grants are used alongside international financial institution loans to support municipal infrastructure investments that will boost Ukraine’s energy efficiency, while also having a beneficial impact on the environment and combating climate change.

The Nordic Environment Finance Corporation (NEFCO) is an international financial institution, owned by the five Nordic countries (Denmark, Finland, Iceland, Norway and Sweden) that finances small and medium-sized green projects with the aim of demonstrating new technologies or solutions with scale-up potential. In Ukraine, Nefco has financed and implemented over 350 projects in energy efficiency, renewable energy, waste and wastewater management. Currently and due to Russia’s full-scale invasion, Nefco is helping Ukrainian municipalities to recover and build back greener and better with a €300 million multi-donor Green Recovery Programme, with contributions from the European Union and Nefco’s owner countries.