Ukrhydroenergo working to draw approx 330 mln euros from EBRD, EIB, WB for recovery and development

MOSCOW. Nov 28 (Interfax) - Ukrhydroenergo is working to draw approximately 330 million euros from the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB) and the World Bank (WB) for recovery and development projects, Ukrhydroenergo General Director Igor Sirota said.

"We are working to draw 200 million euros from the EBRD and 60 million euros from the EIB. All of that for recovery. We have agreed with the EIB that our borrowings could be spent on temporary waterworks at the Kakhovka HPP. We are also discussing additional financing with the WB in the amount of 70 million euros to continue the storage tank project," Sirota said in an interview with Ukrainian media.

The company expects to get the funds in the near future, Sirota said. "Hopefully, we will get the funds from the WB as early as this year. We are likely to conclude an agreement with the EBRD in February of next year. I think our agreement with the EIB will also be reached sometime in February of next year. That would total approximately 330 million euros," Sirota said.

He added that Ukrhydroenergo had been working to draw the funds since the beginning of this year and noted "this is not so easy under the circumstances," despite the company's reputation of a reliable partner. Such loans are very beneficial: "they have the rate of 1%-1.5%. This is cheap money," he said.

Sirota said that the company was not planning to borrow from domestic commercial institutions, including under the 5-7-9 program, some of which was announced as funding of energy sector reconstructions.

"Why are we profitable today? Because we work well and have never taken loans from domestic banks. If we take out a loan for all our needs and take it at 23-24%, we will be overwhelmed by such loans sooner or later [...]. Why should I make 5-7-9 borrowings if I work with other financial companies, with financial institutions, banks, and borrow at 1%? It's better to work for a year and take what is beneficial for the company," Sirota said, explaining his decision.