Page 16 - U4SSC Compendium of practices on innovative financing for smart sustainable cities projects

Sustainable Development Goal impacts

SDG 1: Reduced poverty through creation of decent works

SDG 4 and SDG 10: Inequality decline as citizens will have access to quality and inclusive education

SDG 17: Partnerships between government, academia and private sector

People-first elements

• Access to quality higher education: The construction of the university campus will significantly
increase the number of young people and adults with access to an affordable education.
A rise in Ukrainian graduates will improve their competitiveness in the labour market and
boost economic activity in the country. Construction of the new city and campus will also take
into account the needs of people with disabilities, enabling them to receive education and
employment opportunities. All premises and transport facilities will have disability access.

• Use of smart technology: The city and campus will have smart water supply and its power supply
will acquire 50 per cent of its energy through solar panels placed on the facades and roofs of
buildings, as well as canopies over sidewalks.
• Commitment to sustainability: The University will offer courses focused on sustainable
development and human rights, ensuring students acquire the knowledge and skills necessary
to promote sustainable development and growth. All buildings in the city and on the campus
will be energy-efficient, with requirements to meet BREEAM and LEED standards. The city will
introduce a citywide system for separate collection of household waste.
• Improved access to jobs: The construction of the university campus and smart city Vilne will
provide new employment opportunities and thus, will result in an increase in the number of
jobs in the region. The number of teachers and other staff is expected to increase from 360 to
4 140 by the eighth year of the project.

Innovative finance instrument

The investment covers the construction of the new smart city and university campus, as well as a
road to the newly built municipality. A total of USD 205 million was invested for the project:

• USD 193 million – private investment from the investor Vilne LLC

• USD 12 million – public investment from the State Road Fund.

Payback terms: Payback to the private partner is required. Vilne LLC will use 20 per cent of its own
capital and external financing (loans) for its investment in the city and campus construction and

4 Compendium of practices on innovative financing for SSC projects | January 2023