Denmark Providing Interest-Free Loans for Green Infrastructure Projects in Ukraine
Projects may have a budget beyond €100 million ($113 million). The cooperation is focused on water and energy efficiency
Photo for Ministry of Finance of Ukraine twitter
Denmark plans to provide interest-free loans to Ukraine for green infrastructure projects.
Ukrainian Acting Minister of Finance Oksana Markarova and Danish Ambassador to Ukraine Ruben Madsen signed the Danish Business Finance (DBF) agreement the Danish Embassy in Ukraine wrote.
The DBF offers interest-free loans with a substantial grant element for public sustainable infrastructure projects against a state guarantee. Such projects may have a budget of up to and possibly beyond €100 million ($113 million). The projects will be implemented by Danish suppliers in cooperation with other partners. The cooperation is expected to focus mainly on water and energy efficiency.
“This Agreement is another tangible expression of the political priority that Denmark extends to Ukraine in its efforts to develop a modern European society and thereby also to counter the effects of Russian aggression. We hope that this scheme will help to promote sustainable development and economic growth. Ukraine needs access to capital to develop, and the Danish International Development Agency (Danida) Business Finance is one of the most generous soft loan schemes known globally. I am very pleased that Danida Business Finance is now made available to Ukraine,” Madsen said.
Danish support to Ukraine is mainly channeled through the Danish Neighbourhood Programme (DANEP), which supports a range of key reform areas such as anti-corruption, decentralization, human rights, energy, and labor rights.
DANEP’s budget for 2017-21 is $72 million. In addition, to mitigate the effects of the conflict, Denmark has recently approved a grant of $18 million for a peace and stabilization program. It supports governance and defense reforms and the United Nations Development Programme’s work with conflict-affected communities in eastern Ukraine.