16 Feb 2023 21:10

Denmark supporting critical heating infrastructure in Ukraine through Nefco

MOSCOW. Feb 16 (Interfax) - Denmark has channeled about 4.5 million euros in additional funding through the Nordic Environment Finance Corporation (Nefco), ensuring the delivery of new containerized mobile boiler units to Ukraine, Ukrainian media reported, citing the Nefco press service.

"Denmark and Ukraine are very close partners, and it is good to see that our partnership can also support critical heating infrastructure in Eastern Ukraine. Keeping heating on is of crucial importance for Ukraine's resilience. In addition, it has a positive impact on Ukraine's CO2 footprint," Danish Ambassador to Ukraine Ole Egberg Mikkelsen said.

In particular, 20 donated gas boilers, with a capacity of 39 MW, will ensure district heating supply to over 180,000 people, which is 80% of the total population of the city where they are to be installed, he said. Around 10% of the Ukrainians who will benefit are internally displaced. The funded project will cover about 30-40% of the citizens' heat demand.

Since 2021, Nefco has managed grant funds for the Danish Danida Sustainable Infrastructure Finance (DSIF) Program, financed by the Danish Foreign Ministry. Currently, three projects are under implementation with the goal of creating new projects to swiftly rebuild and improve infrastructure in the coming years.

Nefco is an international financial institution, which finances the expansion of Nordic green solutions across global markets. It was founded in 1990 by Denmark, Finland, Iceland, Norway and Sweden.

DSIF is a facility under the Danish Development Cooperation, Danida, funded by the Danish Foreign Ministry. DSIF offers grant subsidized loans to sustainable infrastructure projects without access to commercial funding in 24 developing countries. DSIF is administered by the Investment Fund for Developing Countries (IFU) based in Copenhagen, Denmark.