Early Warning System

Regions

Europe and Central Asia

Geographic location where the impacts of the investment may be experienced.

Countries

Ukraine

Geographic location where the impacts of the investment may be experienced.

Specific Location

Kharkiv

Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.

Financial Institutions

European Bank for Reconstruction and Development (EBRD)

International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.

Project Status

Proposed

Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.

Bank Risk Rating

Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."

Voting Date

Jun 12, 2026

Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.

Borrower

City of Kharkiv

A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.

Sectors

Energy
Infrastructure
Law and Government

The service or industry focus of the investment. A project can have several sectors.

Investment Type(s)

Loan

The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.

Investment Amount (USD)

$ 17.30 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 15
Converted using 2026-06-10 exchange rate.

Project Cost (USD)

$ 36.92 million

Primary Source

Original disclosure @ EBRD website

Updated in EWS Jun 11, 2026

Disclosed by Bank Jun 10, 2026

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description

If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the project consists of a senior loan of up to EUR15 million to the City of Kharkiv in Ukraine, to finance the acquisition of distributed, resilient heat and electricity generating assets to restore heat supply tor residential, public and other buildings in the wake of the critical damage to the City's largest combined heat and power plant. The Loan is part of a broader financing package, which also includes a EUR17 million investment grant from the European Union ("EU"). Given war-triggered risks, the Loan will also benefit from a partial guarantee provided by the EU on the first loss risk cover basis.

The Loan and the EU grant proceeds will finance the acquisition of up to 22 small and medium-sized natural gas-fired modular boiler houses along with cogeneration units as well as 5 small cogeneration units in existing boiler houses. The implementation of the Project will result in restoration of District Heating ("DH") services, which were disrupted in February 2026 following the critical damage sustained by the Kharkiv combined heat and power plant No. 5 ("CHP-5").

The total annual reduction in greenhouse gas emission from the Project is calculated at 19,091 tonnes of CO2e.

Early Warning System Project Analysis

For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

Categorised B (2024 ESP). The facilities will be installed on brownfield sites owned by the City within existing urbanised areas, in accordance with the Master Plan of the City of Kharkiv and Detailed Territorial Development Plans, and with existing gas and electricity distribution infrastructure. No sensitive ecological receptors or protected areas will be affected.

Investment Description

Here you can find a list of individual development financial institutions that finance the project.

European Bank for Reconstruction and Development (EBRD)

A €15 million senior loan, cofinanced with up to €17 million investment grant from the European Union.

Private Actors Description

A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Kharkiv is the second largest city in Ukraine (and the centre of a metropolitan area comprising many satellite towns), accounting for ca. 3 per cent of national population (at the pre-war estimates). It is located in the north-eastern part of Ukraine. The City hosts a significant internally displaced population, with 212,000 IDPs officially registered as of the beginning of 2026.

Contact Information

This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Hylyaka Iryna
dep_zgdm@ukr.net
+38057 725 3961
https://city.kharkiv.ua
7 Constitution sq., Kharkiv, Ukraine 61003

ACCESS TO INFORMATION

You can request information by emailing: accessinfo@ebrd.com or by using this electronic form: https://www.ebrd.com/eform/information-request

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent.

You can contact the PCM at: pcm@ebrd.com or you can submit a complaint online using an online form at: http://www.ebrd.com/eform/pcm/complaint_form?language=en

You can learn more about the PCM and how to file a complaint at: http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html