12 Dec 2023 18:00

Ukrhydroenergo receives 133 mln euros from EIB for hydropower plants rehabilitation

MOSCOW. Dec 12 (Interfax) - Ukrhydroenergo, Ukraine's largest hydropower generating company, has received 133 million euros from the European Investment Bank to continue financing the Hydro Power Plants Rehabilitation Project.

"With support from our EIB partners and after receiving clearance from government institutions, we received a 133-million-euro tranche today, which is part of the unspent portion of the EIB's loan for the current Hydro Power Plants Rehabilitation Project," Ukrainian media quoted Ukrhydroenergo CEO Igor Sirota's statement posted on the company's website on Monday.

The funding will enable Ukrhydroenergo to purchase critical equipment to be able to respond quickly to emergencies and ensure prompt restoration of the operation of both the company's plants and the United Energy System of Ukraine, Sirota said. The company will also be able to continue reconstructing the units of its hydropower plants and pumped-storage hydropower plants on the Dnieper River, which should enhance their operational reliability and capacity, he said.

Ukrhydroenergo said the funding would be used not only to upgrade and reconstruct hydropower assets belonging to it but also to repair damaged ones.

"This is particularly important, considering the partial destruction of the Dnieper HPP and the ruination of the Kakhovka HPP dam," it said.

EIB Vice-President Teresa Czerwinska said that, as the EU bank, the EIB remained firmly committed to supporting Ukraine's immediate recovery and long-term resilience through its EU for Ukraine Fund and related efforts.

Ukrhydroenergo started implementing the Hydro Power Plants Rehabilitation Project in 2012. Its main purpose is the reconstruction of 21 units at plants on the Dnieper, namely the Kiev PSPP, Kanev HPP, Kremenchug HPP, Middle Dnieper HPP, Dnieper HPP-1, and Dnieper HPP-2.

The new tranche follows the 67 million euros that the EIB disbursed earlier for financing the existing project, which was fully used by mid-2022. In all, the project has involved a 200 million euro loan from the EIB under Ukraine's sovereign guarantees for the refurbishment of 21 units at Ukrhydroenergo's plants.

As reported earlier, in redistributing funds between programs of several ministries, the Ukrainian government reduced by UAH 6.57 billion the state budget expenditures and loans from it, UAH 5.7 billion from which was supposed to finance Ukrhydroenergo's HPP reconstruction program.

Sirota said in an interview with Ukrainian media in November that Ukrhydroenergo was working on attracting around 330 million euros from the European Bank for Reconstruction and Development (EBRD), the EIB, and the World Bank for reconstruction and development projects.