Italy’s EBRD loans 200 million euros to Ukrainian hydropower utility

ЧИТАТИ УКРАЇНСЬКОЮ

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  EUR 200 million loan to Ukrainian hydropower utility to ensure stable electricity production
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  Italy provides 100 million euros in concessional financing, EBRD 100 million euros
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  The loan is for critical equipment and emergency liquidity for two hydropower plants

The European Bank for Reconstruction and Development (EBRD) signs a €200 million loan package for Ukraine’s main hydropower company Ukridnergo to strengthen Ukraine’s energy security following repeated Russian attacks on civilian power infrastructure did. The EUR 100 million EBRD loan, backed by a EUR 100 million concessional parallel loan from Italy, will provide emergency support to restore and sustain the company’s electricity production needs.

The EBRD, which has currently deployed €4 billion to Ukraine since the start of the war, is working closely with its partners on lending to the country. The proceeds of this loan will finance the procurement of important equipment for his two hydropower plants – the state enterprise Dnipro Hydropower Plant and Seredoni Odnipro Hydropower Plant, as well as the liquidity of Ukur Hydro Energy Company. Respond to your needs.

Ukrhydroenergo is one of Ukraine’s main renewable energy suppliers and its power generation is key to maintaining the stability of Ukraine’s power grid during emergencies. It also plays an important role in keeping the energy system in balance and provides intermittent and Essential to support the operation of renewable energy generators.

However, since the Russian invasion in February 2022, Ukurhydroenergo’s assets have been subjected to more than 50 military attacks, causing significant damage to some hydropower plants and causing massive damage to the Nova Kakhovska dam. In addition to the extensive demolition costs, the cost was around 500 million euros. June 6, 2023, Kakhovska HPP in southern Ukraine.

“Supporting the repair and maintenance of Ukraine’s wartime power generation and critical infrastructure is a key investment priority for the EBRD. We support reliable power generation,” said EBRD President Odile Renaud-Basso.

“Italy has been a firm supporter of Ukraine since the start of the Russian aggression. Currently, we are proudly providing a loan of 100 million euros to support the energy sector. As the G7 Presidency As such, we will continue to mobilize international support for Kyiv in this important field,” said Antonio Tajani, Italy’s Deputy Prime Minister and Minister of Foreign Affairs and International Cooperation.

“This agreement is an important step towards the modernization and development of hydropower facilities in Ukraine. We are grateful to the Italian government and the EBRD for their trust and for giving us the opportunity to implement an ambitious plan to improve the efficiency of our hydropower plants. , we will be able to achieve our strategic goal of developing sustainable and efficient energy in Ukraine,” said Ihor Sirota, CEO of Ukur Hydroenergo.

Before the Russian invasion in February 2022, Ukrhydroenergo operated nine hydropower plants on the Dnipro and Dniester rivers, with a total installed capacity of 6.1 GW. However, due to the destruction of the Kakhovska hydropower plant and the reduction in the production capacity of other hydropower plants, the company’s total operating capacity is currently limited to 5.8GW.

The EBRD loan will replace four hydropower units at the Dnipro hydropower plant, which have become obsolete due to extensive development and damage from missile attacks, and two gantry cranes at the Seledni-Odnipro hydropower plant, which are essential for maintenance. We will support you. Operate hydroelectric power plants efficiently.

The EBRD Board granted the Bank’s exemption from its environmental and social policy as the war makes it difficult to carry out environmental and social due diligence. An independent environmental and social audit will be conducted within 12 months of the lifting of martial law.

The EBRD has increased its investments in Ukraine in the wake of the war, injecting 3.8 billion euros into the country in 2022-23. A capital increase of 4 billion euros approved by the central bank’s board at the end of 2023 will allow for further investments of the same level during the war, with the possibility of further capital increases during the post-war reconstruction period.

Energy security is one of the EBRD’s five investment priorities in Ukraine (along with critical infrastructure, food security, trade, and support for the private sector), and the bank has invested in electricity transmission company Ukrenergo and gas company Naftogaz. provides a large amount of funding. Since before the war, the EBRD has been working with Ukulhydroenergo on the restoration of the Dnipro River Falls hydroelectric power plant.