Brief summary of our team activities in public sector in 2018.

1. December, 2018
Project management office:
Key achievements in 2018

2. OUR PROJECTS
2
Utilities and housing management reforms (2016-­‐2018)
Establishment of National energy efficiency fund
(2015-­‐2018)
Implementation of EU Directives on Energy Efficiency
(2018)
Gas market reform
(2017)
Promotion of RES financing in Ukraine (2017)
DHC reform (2016-­‐2018)
Housing and utility subsidies monetization
(2016-­‐2017)

3. OUR PARTNERS
3
Government IFIs, donors and privates companies

4. 4
Develop
• Development of solutions tailored to Ukrainian condition
• Advocacy and alignment among key stakeholders
Deliver
• Coordination and monitoring of implementation
• Just-in-time support to implementing bodies (including drafting
/ review of legal acts and supporting documentation)
Design
• Analysis of existing frameworks and best international practices
• Conceptual design to meet policy needs
APPROACHOUR APPROACH

5. 5
OUR TEAM
Artem Kuznetsov
Senior consultant
Eugene Cherviachenko
Senior consultant
12+ years of consultancy experience:
• Policy consultant for IBRD, IFC, GIZ, EBRD, UNDP
• Corporate finance consultant in Concorde
Capital, BG Capital, CFS Advisors
Education:
Kyiv National Economic University
10+ years of consultancy experience:
• Policy consultant for IBRD, IFC, EBRD, UNDP, GIZ
• Corporate finance consultant in Renaissance
Capital, Concorde Capital
Education:
Central-European University (Budapest)
Viacheslav Kutsman
Analyst
Vladyslav Tsaryk
Analyst
Experience: 3 years
• Consultant for IBRD and IFC
Education:
Kyiv National University of
Trade and Economics
Experience: 3 years
• Consultant for IBRD and IFC
Education:
Kyiv National University of
Trade and Economics

6. ADVISORY ON DEVELOPING AND ADOPTING LEGISLATION
6
Legal act Team contribution Status
Law “On Energy efficiency fund”
Developing EE Fund operational model, corporate governance structure,
financing scheme. Negotiations with EU, Germany and IFC. Support in
development of adoption of the Law and CMU Resolutions
The Law and secondary legal acts are
adopted.
EE Fund established and capitalized.
Law «On EE of buildings»
Developing operational models of Energy Performance Certification
and attestation of energy auditors. Support in development of adoption
of CMU Resolutions
Key secondary legal acts are adopted
First energy auditors passed attestation and
first EPC issued
Law “On commercial metering of heat
and water”
Support for developing the system for heating bill allocation in
multistory buildings. Support of adoption of CMU Resolutions
The CMU Resolution on Heating bill
allocation is developed
Law “On Housing utility services”
Analysis of Ukrainian house management market and EU best practices.
Support of adoption of CMU Resolutions
Key secondary legal acts are adopted
Law “On protection of IFI`s investment
accounts for DHC”
Developing the scheme of IFI`s investments accounts protection. Support
of adoption of the Law
Law is adopted
Draft Law “On energy efficiency” Developing of the draft Law Draft Law is published for public discussions
CMU Resolution “On monetization of
HUS subsidies”
Developing and advocating the system for utilities subsidies
monetization in 2 stages: (1) monetization on service providers level and
(2) monetization on consumers level
The subsidies are monetized on service
providers level

7. SUPPORT IN ESTABLISHING ENERGY EFFICIENCY FUND
7
Financing agreement between
Ukraine and EC
Team contribution:
Facilitationof negotiations and
passing of all formal procedures
Financing agreement between EU,
Germany and IFC on supporting EE
Fund
Team contribution:
Providing inputs for drafting of the
agreement
Secondary legal acts by the Government
Team contribution:
Drafting and supporting adoption of CMU
Resolutions
Handbook for HOAs is prepared
Team contribution:
Developing of the Handbook
Manual of operational procedures
of EE Fund. 20 pilotprojects.
Team contribution:
Developing a structure of pilot
projects implementation. Preparation
of the Manual

8. ANALYTICAL REPORTS IN 2018 (1)
8
Energy efficiency system in
Ukraine
Analysis of an energy efficiency system in Ukraine
- current state, recommendations for further
development, compliance with the national
targets, international commitments of Ukraine and
requirements of the EU Directives.
Analysis and proposals for Art. 5 of
the Directive 2012/27/EU
implementation in Ukraine
Analysis of the key requirements of Article 5 of the
Directive and practical proposals for its implementation
in Ukraine:
• What buildings are covered by the Article
• How to create and operate inventory of such
buildings
Argumentarium on the
Implementation of the EU Energy
Efficiency Directive in Ukraine
Handout for political decision makers and public as well
as private stakeholders. It aims at exemplifying action
needs as well as economic and social benefits for
Ukraine that will arise from proper implementation of
the European EE Directive 2012/27/EU.
Transition to the new system of
multistory buildings management in
Ukraine
In-depth analysis of the current house management
market in Ukraine, including analysis of legislation,
current types of intercourses between homeowners and
house managers, potential for market growth and
recommendations for stakeholders

9. ANALYTICAL REPORTS IN 2018 (2)
9
Energy Efficiency Fund:
key facts
about the Program
Key facts and operational principles of
the upcoming Multifamily buildings
renovation Program of Energy Efficiency
Fund based on available information.
Handbook for Homeowners
Associations: Multifamily buildings
renovation Program
Principles and clear guidelines for HOAs to
participate in the Multifamily buildings
renovation Program of Energy Efficiency
Fund. The document also contains all typical
agreements (excluding granting and
financials agreements).
Manual of operational procedures
of Energy Efficiency Fund
Detailed description of key procedures and
internal rules of Energy Efficiency Fund for
implementing Multifamily buildings
renovation Program

10. ANALYTICAL REPORTS IN 2018 (3)
10
Credit risk assessment of the
municipality
Guidance for commercial banks institutions
on creditworthiness assessment of
municipalities, as well as key features of this
type of lending for the banks
Argumentarium for the Draft Law
«On energy efficiency»
Justification for the adoption of the Law
"On Energy Efficiency", including a detailed
explanation of each article and its
potential impact for Ukraine
Setting the agenda for further
district heating reform in
Ukraine
Overview of key recent developments in
the district heating sector over the last
years and possible further reforms
agenda
Lithuanian and Polish experience
for house management reform
Detailed analysis of the house management
reform in Lithuania and Poland, and key
lessons learned for successful implementation
in Ukraine

11. 11
ANNEX 1: POLICY ADVISORY
PROJECTS IMPLEMENTED BY THE
TEAM

12. POLICY ADVISORY PROJECTS (1)
12
Functional analysis of World
Bank’s projects on heat
(UDHEEP) and water (PMI-2)
Advisory to Government,MPs
and negotiationswith IMF on
Law on restructuringof heat and
water utilities’debts
Advisory to Government and
negotiationswith IMF on
amendments to specialaccounts
regulations for heat and water
utilities
Advisory to Government and
negotiations with EU and
Germany of Concept of
National Energy Efficiency
Fund
Functional analysis of EIB
projects on Early recovery
(UERP) and Ukraine municipal
infrastructure (UMIP)
Advisory to Government,MPs
and negotiations with EU,
Germany on Law on National
energy efficiency fund
Adopted
Adopted
Adopted
2016 2016 2016 2016
2017 2017
Advisory to Government on
National concept of heating
market reform
Advisory to Government on
improvementof reporting
standards of nationalprogram of
'warm loans’for energyefficiency
measuresin residentialbuildings
Adopted
Adopted
2017 2017
Adopted
MINREGIONMINREGIONMINREGIONMINREGION
MINREGION MINREGION MINREGION MINREGION

13. POLICY ADVISORY PROJECTS (2)
13
Advisory to Government on energy
efficiency days in Parliament (Law
on National EE Fund, Law on
energy performance of buildings,
Law on HUS, Law on Commercial
metering)
Advisory to Government and
negotiationswith EU on
Financing agreement EE4U
Advisory to Government,
functionalanalysis and
negotiationswith IMF on utility
subsidies monetization at utilities
level
Advisory and negotiations with
EU,Germany and Government of
secondarylegislation for
Nationalenergyefficiencyfund
(corporategovernance,financing)
Preparation of Handbook and
Manual of operational
procedures for National
Energy Efficiency Fund
Adopted
Adopted
2017 2017 2017
2018 2018
Signed
MINREGION
MINREGIONMINREGION
MINREGION
Adopted
Advisoryto Government,
functionalanalysis ofhousing
utility subsidies system and
proposals for monetizationof
HUS in two stages
2017
MINREGION
Advisory to Government,
analysis of PSOand proposals
to the gas market reform
2017
Analysis of the current payment
discipline system for heat in
Ukraine and proposals for
further improvement
2017
MINREGION
MINREGION
MINREGION

14. POLICY ADVISORY PROJECTS (3)
14
Advisory to Government on
improvementof national
contraction regulations for energy
efficiency measuresin buildings
Advisory to Government and
MPs on Law on protection ofIFIs
investmentsin heating and water
utilities
Advisory to Government on
drafting Law on energy
efficiency (Directive
2012/27/EU)
Advisory to Government and
negotiationswith EU on Financing
agreement EE4U II
Signed
2018 2018 2018
2018
Adopted
MINREGION
MINREGION
Adopted
MINREGION
Advisory to Government on
nationalsystem ofbilling for heat
and water
Pending
2018
MINREGION
Advisory to Government on
national system of regulations
for housing management
companies
Adopted
2018
Advisory to Government on
national system for energy
performance certification in
buildings (Directive
2010/31/EU)
Adopted
2018
MINREGION MINREGION

15. 15
ANNEX 2: CORPORATE FINANCE
PROJECTS IMPLEMENTED BY THE
TEAM

16. COMPLETED PROJECTS IN 2010-­‐2012
16
Debt restructuring EBRD debt financing Debt financing
IPO of 25%
shares at
Warsaw Stock Exchange
IPO of 25%
shares at
Warsaw Stock Exchange
Public debt placement
EUR
27,000,000 USD
25,000,000 USD
46,169,934
UAH
500,000,000
USD
36,000,000
USD
30,413,763
June 2012 February 2012 December 2011 May 2011
December 2010 November 2010
IPO at Warsaw Stock
Exchange
Public debt placement
EUR
60,000,000 UAH
75,000,000
November 2010 October 2010

17. 17
ANNEX 3: SELECTED ANALYTICAL
REPORTS PREPARED BY THE TEAM

18. SELECTED ANALYTICAL REPORTS (1)
18
Energy Efficiency Fund
Concept
Heating in housing and utilities
sector: status and prospects
Energy Efficiency Fund:
Concept and Action Plan
First comprehensive concept of Energy Efficiency
Fund developed based on best European
practices.
The document was used for discussion and
alignment between key Ukrainian and
international stakeholders.
Analytical report with comprehensive overview
of the current status and prospects of Ukrainian
heating sector.
The document was prepared as part of support
to MinRegion and used for policy development
and alignment of technical assistance of
international partners.
Updated concept of Energy Efficiency Fund and
action plan for implementation.
The document was used as a reference for
drafting of legal acts directly related to the
Fund.
Improvement of Payment Discipline
in the District Heating
Analytical report with analysis of the payment
discipline in the district heating sector of
Ukraine, best international practices and
recommendations.
The document was presented to MinRegion for
further policy development.

19. SELECTED ANALYTICAL REPORTS (2)
19
Special Accounts for Household
Payments for Natural Gas
Analytical note on functioning of special
accounts for natural gas supplies settlements
by population. The document describes key
weakness of the current system and provides
recommendations for improvement.
The document is intended to be used for
advocating and policy design purposes.
Concept for 2-stage monetization
of housing and utility subsidies
Conceptual design and implementation road
map for housing and utility subsidies
monetization.
The document was used for avocation of the
reform and as a basis for drafting
corresponding CMU Resolutions.
Analysis and proposals for
subsidy system reform
Analytical report with comprehensive
overview of the current housing and
utilities subsidies system in Ukraine and
recommendations for improvement.
The document served as the basis for
developing 2-stage subsidies
monetization concept.

20. SELECTED ANALYTICAL REPORTS (3)
20
Development of renewable energy
sources in Ukraine
Decentralized heating in Ukraine:
potential and approaches for
implementation
Programs for financing of energy
efficiency measures in Ukraine
Comprehensive overview of European
experience on decentralized heating, rationale
and conditions for it’s promotion in Ukraine.
The document shall be used by MinRegion to
support the development of modern polices in
the heating sector.
Comprehensive overview of technical assistance
and financial programs on energy efficiency in
Ukraine.
The document shall be used by MinRegion
improve coordination and efficiency of the
available donors’ support to energy efficiency in
Ukraine.
This report provides analysis of key trends in
the development of renewable energy sources
in Ukraine and abroad, an overview of the
current state of the energy sector and the
potential of renewable energy in Ukraine,
funding mechanisms, key barriers and
recommendations for the authorities.

21. SELECTED ANALYTICAL REPORTS (4)
21
Potential of commercial lending to
SMEs in biomass energy sector
Methodological recommendations
for municipalities
Analysis of key trends of RES industry worldwide
and analysis of biomass market structure and
potential, overview of current state of biomass
energy sector financing in Ukraine and estimation
of demand for commercial lending to SMEs in
biomass energy sector.
The document is intended for financial institutions
for structuring of financial products in biomass
energy sector.
The report provides rationale for
implementing energy efficiency and
renewables projects for municipalities,
describes practical steps for municipalities
to assess financing options for such projects
with the focus on bank loans.
The document is intended to be used as a
handbook for local authorities.
Development of municipal financing
in Ukraine: international experience
and recommendations
Best international practices for municipal
financing, current state and perspectives of
municipal financing in Ukraine.
The report provides recommendations for
development of municipal lending market in
Ukraine.

22. SELECTED ANALYTICAL REPORTS (5)
22
Energy efficiency system in
Ukraine
Analysis of an energy efficiency system in Ukraine
- current state, recommendations for further
development, compliance with the national
targets, international commitments of Ukraine and
requirements of the EU Directives.
Analysis and proposals for Art. 5 of
the Directive 2012/27/EU
implementation in Ukraine
Analysis of the key requirements of Article 5 of the
Directive and practical proposals for its implementation
in Ukraine:
• What buildings are covered by the Article
• How to create and operate inventory of such
buildings
Argumentarium on the
Implementation of the EU Energy
Efficiency Directive in Ukraine
Handout for political decision makers and public as well
as private stakeholders. It aims at exemplifying action
needs as well as economic and social benefits for
Ukraine that will arise from proper implementation of
the European EE Directive 2012/27/EU.
Transition to the new system of
multistory buildings management in
Ukraine
In-depth analysis of the current house management
market in Ukraine, including analysis of legislation,
current types of intercourses between homeowners and
house managers, potential for market growth and
recommendations for stakeholders

23. SELECTED ANALYTICAL REPORTS (6)
23
Energy Efficiency Fund:
key facts
about the Program
Key facts and operational principles of
the upcoming Multifamily buildings
renovation Program of Energy Efficiency
Fund based on available information.
Handbook for Homeowners
Associations: Multifamily buildings
renovation Program
Principles and clear guidelines for HOAs to
participate in the Multifamily buildings
renovation Program of Energy Efficiency
Fund. The document also contains all typical
agreements (excluding granting and
financials agreements).
Manual of operational procedures
of Energy Efficiency Fund
Detailed description of key procedures and
internal rules of Energy Efficiency Fund for
implementing Multifamily buildings
renovation Program

24. SELECTED ANALYTICAL REPORTS (7)
24
Credit risk assessment of the
municipality
Guidance for commercial banks institutions
on creditworthiness assessment of
municipalities, as well as key features of this
type of lending for the banks
Argumentarium for the Draft Law
«On energy efficiency»
Justification for the adoption of the Law
"On Energy Efficiency", including a detailed
explanation of each article and its
potential impact for Ukraine
Setting the agenda for further
district heating reform in
Ukraine
Overview of key recent developments in
the district heating sector over the last
years and possible further reforms
agenda
Lithuanian and Polish experience
for house management reform
Detailed analysis of the house management
reform in Lithuania and Poland, and key
lessons learned for successful implementation
in Ukraine