Raiffeisen Bank and the Ukrainian Ministry of Economy and Environment signed two memoranda of understanding at the inaugural C8 Summit in Bukovel regarding the development of investment projects in the Carpathian region. The pilot scheme will cover the Lviv, Ivano-Frankivsk, Zakarpattia and Chernivtsi regions, and the potential funding for the resulting portfolio could reach 20 million euros.
Briefly about the main points
- Agreements have been signed regarding the PPF and project and export financing.
- The pilot scheme covers four regions in the Carpathian region.
- The portfolio is eligible for funding of up to 20 million euros.
- PPF involves the identification, initial assessment and preparation of initiatives.
- The priorities are energy, logistics, processing, tourism, healthcare and infrastructure.
PPF should assess initiatives with a view to securing funding
First memorandum sets out the framework for cooperation under the Project Preparation Facility. Raiffeisen Bank will provide expertise in identifying, conducting initial assessments of and preparing potential investment projects.
The mechanism is designed to build a portfolio of private-sector initiatives and public-private partnership projects. Their proponents will be able to receive early feedback on the financial viability of their proposals and on potential future engagement with investors and financial institutions.
Chairman of the Board of Raiffeisen Bank Natalia Gurina She stated that this collaboration should help businesses and communities turn promising ideas into projects ready for implementation. According to her, what matters for the economy is not only the emergence of new initiatives, but also their thorough preparation to attract funding.
The pilot portfolio will cover four regions
The second memorandum focuses on the preparation of projects in the Lviv, Ivano-Frankivsk, Zakarpattia and Chernivtsi regions. Its aim is to take regional initiatives from the conceptual stage, through the necessary preparatory phase, to a stage at which they can apply for funding.
The figure of up to 20 million euros represents the potential total funding for the future portfolio. The agreements that have been signed do not mean that these funds have already been raised or are guaranteed for specific projects.
Priority areas of cooperation
The parties identified energy, logistics, agricultural processing, the production of value-added goods, tourism, healthcare and municipal infrastructure as priority areas.
The scheme will cover both business projects and initiatives relating to community and infrastructure development. For the Carpathian region, this model is intended to serve as a tool for building a portfolio of investment initiatives that can be implemented provided the necessary funding is secured.
