Ukraine's Khmelnytskyi risks halting energy security project without USAID funding — deputy mayor

Deputy Mayor Vasyl Novachok discussed this in an interview with Espreso.

Mr. Vasyl, you mentioned Khmelnytskyi received UAH 100 million from USAID. How was it used?

We collaborated with USAID on multiple projects, but the most impactful was in energy security. In 2020, we signed a 10-year agreement to develop a city heat supply strategy, a critical document outlining the future of centralized heating in Khmelnytskyi. We made progress, but when the war started, we had to pause. By 2023, we finalized and got the strategy approved by the ministry. USAID only worked with cities that had an approved plan, providing support for implementation. That’s when Khmelnytskyi started actively receiving aid. We submitted requests based on our needs, USAID verified them against the heat supply plan, and, when possible, provided the necessary equipment.

We received three excavators, an emergency vehicle, kilometers of pipes, and hundreds of valves. In 2023, we also got generators, and most recently, four cogeneration units. In short, everything required for stable heating, system upgrades, and increased energy generation.

So, you got the equipment directly, not the money for it?

Yes. We specifically requested the equipment itself. Based on those requests, it was selected and purchased for us. We saw the prices on the invoices for the equipment and materials we received, and they were very good. For example, excavator equipment was 20% cheaper than from a dealer in Ukraine. Pumping equipment was 20-25% cheaper because it was bought in Germany and delivered to Ukraine as humanitarian aid. What could be sourced in Ukraine, like pipes, was purchased directly from local factories. That meant Ukrainian pipe manufacturers could sell their products, and we got exactly what we needed.

It’s worth noting that the use of the equipment was strictly monitored, whether it was installed, operational, or if anything had gone missing. We only received the next batch after verifying the previous one. And so it went, every time. In total, we received around UAH 100 million in aid. In wartime, we wouldn’t have been able to allocate such resources to the Khmelnytskyi budget. First, the personal income tax of military and law enforcement agencies was pulled from city budgets. Second, a huge financial resource was directed toward supporting the defense forces and those affected by the war.

On top of that, we’ve been working on an exciting project — the construction of a microgrid. Our plan was to boost our own electricity generation.

"By producing heat, hot water, and electricity, we aimed to build a parallel network linking the city’s critical infrastructure — boiler houses, water pumping stations, and sewage facilities — with hospitals gradually being connected. Right now, during blackouts, we supply electricity to the heat and power plant. Once the microgrid is up, we’ll be able to power hospitals and water utilities as well."

So, is this project on hold for now?

This is a significant amount of money for the city, and we can’t move forward without outside help. It’s still unclear whether USAID will be completely shut down or if, after the audit, it will continue operating in some capacity.

It would be ideal if the people who worked on the energy security project at USAID could stay. They’re highly skilled professionals who understand not only the energy sector but also the realities of Ukrainian municipalities — who's ready to work, accept assistance, and who isn’t (and won’t). Unfortunately, there are plenty of the latter. Even if a new organization is created, it will take a long time before it’s fully up and running.

I’m talking specifically about the energy security project, but there were also critical initiatives supporting local governance and independent journalism. And, by the way, I believe journalist grants are essential. We already have plenty of oligarch-controlled media. If we want news that isn’t filtered through an oligarch’s lens, independent journalists need funding. If USAID covered that cost, there was nothing wrong with it.

Was it bad that USAID organized study tours where our doctors and local officials could learn from other countries and bring that knowledge back to Ukraine? That’s why these accusations sound bizarre: "That's it, grant-eaters will have a hard time now." Who are these so-called “grant-eaters”? Ukrainians who dedicate their time and lives to the country’s development. It’s a good thing they exist, and it's great that there were programs supporting them. Ukraine needs this now, especially in the middle of a full-scale war.

"When we win, I’m confident Ukraine can stand on its own. But right now, as we fight a giant like Russia, we need help. And we’ve been deeply grateful to the American people for providing it."

Don't you think the decision to cut U.S. aid to foreign countries was made under pressure from pro-Russian forces?

I don’t think the FSB has that much influence. The U.S. agency USAID, by the way, was founded in 1961. It’s an old institution that has outlasted many presidents — both Democrats and Republicans. And for a long time, it operated with a fair degree of independence. But the Trump administration doesn’t want people like that. What they can’t control, they destroy.

Yes, it’s a bit of a barbaric approach, but that’s the choice the American people made. All we can do is watch.

• Earlier, Espreso reported that in Khmelnytskyi, a city of nearly 300,000 residents, people built their own small-scale power network. As a result, the district heating company now runs entirely on its own electricity — and even has extra to sell.