This investment will be utilized in the renovation of an outdated and inefficient district heating infrastructure in the city.
The modernization project is expected to eliminate high rate of heat losses, by lowering high energy consumption and financing heating meters installation that will spur residential consumers to save energy.
Borrower of the loan is Sakhalinskaya Kommunalnaya Kompaniya, which is majority owned by the city of Yuzhno-Sakhalinsk, a district heating, water and wastewater utility.
Yuzhno-Sakhalinsk City Assembly Chairman Sergey Dmitriev said that the 20-year loan being provided is expected to enable municipal firms to modernize the infrastructure needed for heat distribution in the city.
To date, EBRD has invested approximately €1bn in municipal and environmental infrastructure projects in Russia.
