USAID Launches Municipal Heating Reform Project in Ukraine

The Minister of Housing and Communal Services of Ukraine, Oleksiy Kucherenko speaks at the Launch of the Municipal Heating Project. Kyiv - May 18, 2009. Today U.S.  Ambassador in Ukraine, William B.  Taylor joined Minister of Housing and Communal Services of Ukraine, Oleksiy Kucherenko at presentation and press-conference dedicated to the launch of USAID’s three-year Municipal Heating Reform Project (MHR) in Ukraine.   The project aims at helping Ukraine transform municipal heating into a financially viable, well-managed, and fairly regulated sector that delivers reliable, quality services at affordable prices to the population, public institutions, and local industries.  Working closely with the National Government of Ukraine (GOU) and local governments, the MHR Project will strengthen the legal, regulatory, and institutional framework leading to the improvement of heating services, tariff regulations, and compliance with the EU legislation in this sphere. Ukrainian cities will receive direct assistance in improving their heating services through development of municipal energy plans, implementation of energy-efficient projects in buildings and heat supply systems, installation of meters, and promoting further development of condominiums organizations. Additionally, the MHR Project will launch national information and outreach campaign to educate citizens how they can reduce heating costs, and enhance the condition of common spaces through energy efficiency and home improvements.   The MHR Project was developed in response to the critical state of the municipal heat supply system, which was operating in the environment of scarce financial and technological resources for decades, leading to its reduced efficiency and significant losses in heat networks, both on the supply and demand sides.  At the same time, skyrocketing prices of fuel and dependence on imports have affected the quality of municipal heat supply and have led to negative social and economic consequences.  Taking into account the economic crisis in Ukraine, the issue of heating system reform is critical for ensuring sector’s efficiency and satisfaction of consumer needs, as well as for economic reasons.  Indeed, if relevant reforms are implemented, the Ukrainian municipal heating sector can potentially save $2 billion a year. ### United States Agency for International Development’s (USAID) assistance focuses on the following areas: Economic Growth, Democracy and Governance, Health and Social Sector.  Since 1992, USAID has provided $1.6 billion worth of technical and humanitarian assistance to Ukraine to further the processes of democratic development, economic restructuring and social sector reform in the region.  For additional information about this and other USAID programs in Ukraine, please call USAID's Development Outreach and Communication Office, at tel.  (044) 492-7101 or visit the USAID website at: http://ukraine.usaid.gov.