EBRD provides €75m to Ukraine to rebuild hydropower plants
The European Bank for Reconstruction and Development (EBRD) is providing Ukrhydroenergo, Ukraine's largest state-owned hydropower company which operates hydropower plants along the Dnipro and Dnister rivers, with a €75 million loan to modernise and renovate its hydropower plants.
Source: a press release from Ukrhydroenergo; press release from the EBRD
Quote from Ukrhydroenergo: "The EBRD has signed an agreement with Ukrhydroenergo PJSC to provide a €75 million loan to finance the project entitled Modernisation and renovation of generation facilities at Ukrhydroenergo hydropower plants."
Details: The loan is secured by a European Union guarantee under the Ukraine Investment Framework, which Ukrhydroenergo describes as a tool to mobilise funding for Ukraine's recovery and long-term growth.
The financing package also includes investment grants from international donors of up to €20 million. The estimated total cost of the project, including Ukrhydroenergo's own contribution, is about €120 million.
Quote from Valentyn Hvozdii, head of the supervisory board of Ukrhydroenergo: "Securing EBRD financing backed by an EU guarantee underscores the trust our international partners have in Ukrhydroenergo and the quality of the company's corporate governance."
More details: The funds are due to be used, among other things, to purchase critically needed equipment for designated hydropower plants operated by the company.
This includes hydroelectric power equipment damaged by Russia's military aggression, hydromechanical equipment for modernisation and equipment for emergency response under martial law.
The project is designed to support the company's stable operation under martial law and to carry out emergency equipment replacement, improving operational reliability and ensuring the safe operation of hydropower plants.
Quote from Bohdan Sukhetskyi, acting CEO of Ukrhydroenergo: "The financing will enable the timely procurement and deployment of critically needed equipment, as well as the creation of a reserve for rapid response to emergencies."
Background:
- Ukrhydroenergo reported earlier that the EIB would provide the first tranche of a €120 million loan to rebuild and modernise Ukrainian hydroelectric power plants.
- Sukhetskyi said that Ukrenergo, Ukraine's state-owned electricity transmission operator, owed Ukrhydroenergo US$2.1 billion on the balancing market.
- Ukrhydroenergo was also reported on 22 April to have contracted Consulting Company Ostriv LLC to provide engineering and construction consultancy services worth US$192,600 following a tender.
- Two Ukrainian ministries were reportedly tasked with developing a budget programme to compensate for the difference in electricity tariffs that arose after Russian forces destroyed the Kakhovka Hydroelectric Power Plant.
- Reports indicated earlier that Ukrhydroenergo had signed a contract worth US$101,4 million with Adamant Construction Company LLC to build a protective structure for the Dnipro Hydroelectric Power Plant.
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