Mid Term Evaluation (MTE) of Finland Ukraine Trust Fund (FUTF)

FUTF is EUR 6 million energy efficiency, renewal energy and innovative technologies project in Ukraine. NEFCO commissioned nn independent evaluation of the project at the end of 2020. The project period was originally 2018-2021, but due to delays, it was agreed to extend the implementation until end of 2022.

Conclusions of MTE were:

  • FUTF is well aligned with the Ukrainian energy sector policies and objectives. It contributes to increase the share of renewables in the Ukrainian energy mix and introduces new solutions that could contribute to the national renewable energy and energy efficiency related objectives also at larger scale.
  • Among renewable energy options, biomass is the most under-developed sector in Ukraine while it is among the core expertise of Finnish energy industry. FUTF and/or the future Green Investment Fund (established 2021) could have a role in promoting guidelines and systems for ensuring sustainability of bioenergy before the sector grows rapidly.
  • There are numerous donors, International Financial Institutions (IFIs), government agencies and private investors participating in energy sector development in Ukraine. FUTF is small, but can have a leveraging role in attracting larger investments to innovative energy sector solutions, leading to clear added value of the fund.
  • Promotion of Finnish content in FUTF projects is a good way to link development cooperation to private sector development in Ukraine and to internationalization of Finnish companies.
  • Scope for taking innovation further, e.g. role of Ukrainian private sector can be enhanced.

The recommendations were:

  1. The evaluation supports the recent EMC (Evaluation and Management Committee) decision to temporarily stop accepting any new applications for FUTF in Ukraine. CMC (Coordination and Management Consultant team can focus on clearing the backlog of applications and on providing the support to the applicants of projects.  CMC can focus efforts on ensuring that implementation of the approved TA and Demonstrative Projects could start within the next few months. FUTF has a large number of important and innovative ideas endorsed by EMC. New projects may come up with investment proposals that would be potentially relevant to be financed as Demonstrative Projects from FUTF.
  2. NEFCO and SAEE (State Agency of Energy Efficiency) to reconsider the application modalities: periodic, calls for proposals, role for Finnish companies, co-financing requirement.
  3. More emphasis on disseminating and communicating information about actual and expected results of FUTF both in Ukraine and in Finland.
  4. Disseminate information about scope of FUTF and opportunities within to a wider range of Finnish companies and experts.
  5. Engage industrial associations and NGOs in Ukraine to share lessons learned and for potential replication of approaches and technologies.
  6. MFA and NEFCO to consider the linkages and synergies between FUTF, MFA’s other private sector instruments and the support tools of Team Finland network.
  7. Potential for additional financing to the FUTF by MFA and NEFCO: If a continued need for innovative Finnish solutions exists.

Evaluation report

Mid‐Term Evaluation of Finland Ukraine Trust
Fund at NEFCO
 (PDF, 74 pages, 4.7 MB)