EU4Energy: Municipal Project Support Facility (MPSF)

Project duration



€12 million
EU4Energy: Municipal Project Support Facility (MPSF)
EU4Energy: Municipal Project Support Facility (MPSF)

Brief Description

The Municipal Project Support Facility (MPSF) was set up in 2015 with a very specific aim: to provide help to municipalities to access the financing necessary to deliver energy efficiency investments and financial savings.


Why is the Facility needed?

Many public utilities in the region are currently undergoing substantial reform, with responsibility for various services increasingly being transferred to local authorities. Funding schemes are available to help municipalities upgrade urban infrastructure such as district heating, urban transport and street lighting, and to exploit the potential of renewable energy sources. Accessing this funding, however, can be a challenge for local authorities that often lack the necessary capacity and expertise.

Actions in brief

How does the Facility help?

This is where the MPSF comes in. It has a budget of €12 million running to 2022 to help local authorities identify suitable funding projects and then apply. It does this by lending a hand throughout the application process. For example, support is available to carry out time consuming and often complex feasibility studies, environmental impact assessments and energy audits, which are often obligations in any funding process.

The MPSF is financed under the Neighbourhood Investment Facility (NIF). This means that it pools grant resources from the EU budget and Member States, and uses them to leverage loans from European financial institutions like the European Investment Bank (EIB).

Who stands to benefit?

The MPSF supports the Sustainable Municipal Flagship Development Initiative, a tool available to local authorities that have signed up to the Covenant of Mayors (CoM) in the six Eastern Neighbourhood region countries: Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine. CoM authorities have voluntarily committed to reducing their CO2 emission by 20 % in 2020, while new signatories now pledge to reduce CO2 emissions by at least 40 % by 2030.

The aim of the MPSF is to attract investments amounting to around €300 million for municipal infrastructure across the region, thereby improving the provision of public services and quality of life.

See project description

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