Success - Ostroh and ESCO-Rivne
09 April 2010
IBSER Assisting Municipalities in Implementing Their Infrastructure Development Projects
As part of the Municipal Finance Strengthening Initiative project implemented with support of USAID, the Institute of Budget is assisting Ukrainian cities to implement investment projects of infrastructure development, in particular, in the area of energy saving. IBSER is working proactively on this component with six Ukrainian cities: Lviv, Cherkasy, Rivne, Ostroh (Rivne Oblast), Slavutych (Kyiv Oblast), and Komsomolsk (Poltava Oblast).
Thus, a prolonged cooperation between IBSER, Ostroh City Council, and ESCO-Rivne Communal Energy Service Company under a Memorandum of Cooperation concluded between the parties, has resulted in forwarding a package of documents to the Ministry of Finance on 9 April 2010, as required by Resolution of the Cabinet of Ministers of Ukraine No.207 "On Approving the Procedure of Borrowing into Local Budgets" dated 24 February 2003.
Among other things, the said package of documents contains a draft decision on reconstruction of the heat supply system for educational institutions of the city of Ostroh, Rivne Oblast — Romashka Preschool Educational Institution No.1 and Veselka Preschool Educational Institution No.2 — based on commercial credit, as well as the justification for compliance of this transaction with the requirements established by budget legislation regarding municipality’s ability to meet its debt obligations fully and on time.
The content of this draft decision is special in that it initiates a new method of borrowing for local budgets pursuant to the mechanism developed by IBSER experts, which required special wording to be included to ensure its compliance with the current legislation.
Glyanec