EBRD to provide Ukraine with 10 mln euro loan to restore Nikolayev's infrastructure

MOSCOW. Dec 19 (Interfax) - The European Bank for Reconstruction and Development (EBRD) will provide a 10-million-euro loan to the Nikolayev water utility to rebuild its water supply, drainage and water treatment infrastructure.

The EBRD Board of Directors approved the relevant project at a meeting on December 12, Ukrainian media reported, citing the EBRD website. The total cost of the project stands at 33 million euros.

The EBRD loan will be supplemented by Denmark's investment grants of up to 9.8 million euros, up to 5 million euros in a grant from the Eastern European countries, a loan from the European Investment Bank (EIB) and local funding totaling up to 8.2 million euros.

Under the agreement, along with the Nikolayev city guarantee, the loan will also receive a guarantee from Spain, which will cover half of its amount and will be structured on a parity basis. The term of the loan is 13 years with a three-year grace period.

The revamping project includes rebuilding the pre-treatment unit at the Dnieper River water intake, including installing new micro filters and replacing screens; reconstructing pumping station No. 1, including repairing the station's building, replacing pumps and measuring and control equipment; replacing some of the steel pipelines in the water supply network; and retrofitting the electric transformer substation.

The project is expected to provide Nikolayev with drinking water, reduce water losses and improve its quality, while cutting energy consumption and greenhouse gas emissions.

As previously reported, the Ukrainian government agreed on December 12 to amend the grant agreement with the EIB on revamping the water supply and drainage system in Nikolayev, increasing the size of the grant from 5 million euros to 8 million euros.