Ihor Syrota: PJSC Ukrhydroenergo received a tranche of €133 million from the EIB for the comprehensive Hydro Power Plants Rehabilitation Project

admin December 11, 2023
Press service of Ukrhydroenergo

Ukrhydroenergo Company continues to implement the comprehensive Hydro Power Plants Rehabilitation Project launched back in 2012. The main goal of the Project is to reconstruct 21 hydroelectric units at the selected power plants in the Dnipro River basin, specifically: Kyiv PSP, Kaniv HPP, Kremenchuk HPP, Seredniodniprovska HPP, Dnipro HPP-1 and Dnipro HPP-2.

reconstruction of hydroelectric unit

Previously, the European Investment Bank (EIB) has allocated €67 million to finance the ongoing project, and the amount was fully used in mid-2022. In total, €200 million of the EIB loan funds were attracted under Ukraine’s sovereign guarantees for the reconstruction of 21 hydroelectric units at the company's power plants.

“The received funding will allow us to purchase crucial equipment to respond quickly in case of emergencies and ensure prompt restoration of the operation of both the Company's power plants and the Ukrainian Unified Energy System in general.  The Company will also be able to continue reconstructing the hydraulic units of Ukrhydroenergo's HPPs and PSPs on the Dnipro River, which will increase their operational resilience and capacity, - said Ihor Syrota, Director General of PJSC Ukrhydroenergo. - With the support of our partners from the European Investment Bank and after receiving approval from the government agencies, today we received a tranche of 133 million euros, which is a part of the undisbursed amount of the EIB loan under the ongoing Hydro Power Plants Rehabilitation Project. We are grateful to our partners for the funds provided and for the maximum assistance in the implementation of projects in this difficult time”.

The allocated funds will be used not only to upgrade and reconstruct hydropower facilities owned by Ukrhydroenergo, but also to restore some damaged power facilities and capacities lost due to shelling. This is crucially important given the partial damage of Dnipro HPP and the complete destruction of Kakhovka HPP.

EIB Vice-President Teresa Czerwińska, who is responsible for the Bank’s operations in Ukraine, said: “Since the beginning of the full-scale invasion and to this day, Ukraine’s energy facilities, including hydropower facilities, are under constant attacks. While Russian bombs bring destruction, we have been steadfast in offering support right from the beginning. This €133 million underscores our strong commitment to assisting the country, particularly in strengthening its energy infrastructure. These funds will enable Ukrhydroenergo to uphold the reliability of its equipment, which is crucial for the stable and uninterrupted operation of Ukraine’s energy system. As the EU bank, through its EU for Ukraine Fund and related efforts, the EIB remains firmly committed to supporting Ukraine’s immediate recovery and long-term resilience”. 

European Commission Executive Vice-President for an Economy that Works for People Valdis Dombrovskis said: “We warmly welcome the EIB’s latest disbursement to Ukraine to help it carry out emergency repairs to its hydro-electric plants. Backed by an EU guarantee, this is another valuable contribution to financing Ukraine’s urgent requirements as it struggles to restore essential services damaged by Russia’s aggression. It will allow state hydropower company Ukrhydroenergo to maintain the safe operation of Ukraine’s electricity grid, particularly crucial during the winter months. This funding is part of the European Union’s unwavering support for Ukraine, which is here to stay”.

As a reminder: by Resolution of the Cabinet of Ministers of Ukraine No. 1099-p dated 01.12.2023 “On Redistribution of Certain State Budget Expenditures and Provision of State Budget Loans Provided in 2023 for the Implementation of Investment Projects at the Expense of Credits (Loans) Attracted by Ukraine from Foreign States, Foreign Financial Institutions and International Financial Organizations”, the amount of state budget expenditures for the existing investment project on rehabilitation of hydro power plants of PJSC Ukrhydroenergo has been increased.