New investments in energy stability: Ukrhydroenergo receives €200 million in financial support from the EBRD and the Government of Italy

admin February 17, 2024
Press service of Ukrhydroenergo

On February 17, Ukrhydroenergo and the European Bank for Reconstruction and Development (EBRD) signed a Loan Agreement to finance the "Emergency Recovery of Hydropower Plants" project. Additionally, the package of executed documents included an Accession Statement between "Ukrhydroenergo", the Government of the Italian Republic, Cassa Depositi e Prestiti S.p.A., a development bank acting as an administrator on behalf of the Ministry of Economy and Finance of the Italian Republic, the Reconstruction Fund for Development Cooperation, and the EBRD, as well as a Guarantee Agreement, signed between Ukraine, the EBRD, and the Government of the Italian Republic.

Dmytro Kuleba, Minister of Foreign Affairs of Ukraine, Antonio Tajani, Deputy Prime Minister and Minister of Foreign Affairs and International Cooperation of Italy, Odile Renaud-Basso, President of the EBRD, Ihor Syrota, CEO of Ukrhydroenergo, and Antonella Baldino, authorised representative of the Italian state-owned bank Gruppo Cassa Depositi e Prestiti have signed the agreement.

This event confirms the trust and support of international financial institutions for the strategic development of Ukraine's energy sector. It is a major step in supporting the stability of Ukraine's hydroelectric infrastructure.

The EBRD loan of €100 million, supported by a parallel concessional loan of €100 million from Italy, will provide extraordinary support for the recovery and maintenance needs of the company's power generation.

The credit line of €200 million under state guarantees will be provided in two tranches. It will include €150 million for financing the supply of critically important equipment for the Dnipro HPP and Seredniodniprovska HPP, as well as €50 million for providing emergency liquidity support to Ukrhydroenergo to ensure the company's operational stability.

Italy has been a staunch supporter of Ukraine since the beginning of the Russian aggression. Now, we are proudly providing, through the actors of our Development Cooperation, a €100 million loan to support the energy sector. In our capacity as G7 Presidency, we will keep mobilising international support to Kyiv, also in this key area”, said Italian Deputy Prime Minister and Minister of Foreign Affairs and International Cooperation Antonio Tajani.

"We are grateful to the Goverment of Italy for their comprehensive support during such difficult times for Ukraine. The joint efforts of the Government of Ukraine, the Government of Italy, the EBRD, and Ukrhydroenergo will contribute to ensuring sustainable energy supply for our citizens and key economic sectors, regardless of external challenges. Ukrainian hydroelectric power, due to the actions of Russian terrorists, lost about 2,500 MW of capacity, of which more than 1,500 MW has already been restored. Restoration continues, and with the support of partners, it will accelerate. This agreement is another proof of our confidence in the future of Ukraine as a strong and resilient state", said Ukrainian Prime Minister Denys Shmyhal.

"Supporting power generation in Ukraine during the war is a key investment priority for the EBRD. This loan package will support business, the overall economy, and communities now, and will also have long-term strategic significance, as better functioning of the economy during the war will better prepare Ukraine for recovery when the time comes for reconstruction," said EBRD President Odile Renaud-Basso.

"This agreement is an important step towards modernising and developing Ukrainian hydropower facilities. It reflects the international community's recognition of the importance of our projects for ensuring a stable energy supply in Ukraine. We are grateful to our partners for their trust and the opportunity to implement ambitious plans to improve the efficiency of hydropower plants. After signing the Agreement, this support will allow us to achieve strategic goals for developing sustainable and efficient energy in Ukraine", stated Ihor Syrota, CEO of Ukrhydroenergo.