Energoatom receipt of $1 bln Sberbank loan being drawn out
KYIV. May 19 (Interfax) - The Ukrainian state company National Atomic Energy Generating Company Energoatom has yet to sign a loan agreement with Sberbank of Russia for $1 billion to be used for the construction of the third and fourth power units at the Khmelnytsky nuclear power plant.
Energoatom President Yury Nedashkovsky told reporters on Thursday that the company is not satisfied with the loan terms offered by the bank, notably the fairly high interest rate.
"In Atomstroyexport's competitive proposals the issue was raising a state credit, but today's proposal by Sberbank of Russia in fact represents a commercial credit," Nedashkovsky said. Loan negotiations continue, he said.
Energoatom's vice president for new projects, Aidin Aisin, said not long ago that the company was looking to clinch the $1 billion loan agreement with Sberbank before March 11 this year.
Ukraine and Russia inked an intergovernmental cooperation agreement concerning the Khmelnytsky power units last June. Russia undertook to organize financing sufficient for designing and commissioning the units. Last October, Sberbank told Energoatom it was prepared to offer $1 billion for the primary work - designing and preparing the construction site - under state guarantees. To receive this, Ukraine is to contribute at least 15% of the cost.
A feasibility study indicates a preliminary construction cost for the two units of 33 billion hryvna, or $4.154 billion.