The development objective of the Energy Efficiency Project is to contribute to improved energy efficiency by industrial and commercial companies, municipalities, municipal sector enterprises and energy service companies by facilitating sustainable financial intermediation for the financing of energy efficiency investments. The components of the project includes: Ukreximbank has a successful track record of lending to industrial companies for energy efficiency projects under a parallel credit line provided by the European Bank for Reconstruction and Development (EBRD). Lending to municipal energy efficiency projects is inherently more risky, as municipalities creditworthiness is challenged by political interference in tariff setting, limited borrowing capacity and collateral limitations. Commercial debt financing and equity co-financing will be drawn on to co-finance projects; additional grant co-funding may also become available through potential future climate finance and the Eastern European energy efficiency and environment partnership. The borrower will also on-lend to other eligible financial institutions - participating banks (PBs) - that are willing to invest in eligible energy efficiency projects in the industrial and municipal sector. This will improve the capacity of local financial institutions to identify and evaluate potential energy efficiency investments.