Ukrhydroenergo expecting 200 mln euros from EBRD, Italy to rebuild 2 HPPs

MOSCOW. Aug 20 (Interfax) - Ukrhydroenergo is preparing to make use of a 200-million-euro loan it expects to receive under a loan agreement between the European Bank for Reconstruction and Development (EBRD) and the Italian government, Ukrainian media said, citing an Ukrhydroenergo report following a meeting between the company's CEO Igor Sirota and Italian Ambassador in Kiev Carlo Formosa.

"The central issue at the meeting was the discussion of the Italian side's support for the restoration of Ukraine's hydropower sector under a loan agreement between the EBRD and the Italian government on allocating 200 million euros for rebuilding Ukrhydroenergo's hydropower plants," the company said on its website on Monday.

Formoza, in turn, reaffirmed Italy's readiness to provide financial support to damaged Ukrainian hydropower plants and pumped storage plants, it said.

"We recognize the importance of this infrastructure for Ukraine [...] and will actively contribute to the implementation of restoration projects," the ambassador said.

According to Sirota, rebuilding the destroyed infrastructure is critical to ensuring Ukraine's energy security.

"We appreciate the support of countries that help us in these difficult times," he said.

The parties also reaffirmed their commitment to enhancing cooperation and outlined priorities for their joint energy projects, the company said.

As reported, Ukrhydroenergo and the EBRD signed a loan package on February 17, 2024 to finance the Emergency Hydropower Rehabilitation project.

The secured 200-million-euro loan will be provided in two tranches: 150 million euros to finance the procurement of critical equipment for two of the state-owned company's hydropower plants, Dnieper HPP and Serednodniprovskaya HPP and a further 50 million euros to address Ukrhydroenergo's liquidity needs. The EBRD loan of 100 million euros is backed by a concessional parallel loan of 100 million euros from Italy.