EBRD to provide 200 mln euro loan to Ukrhydroenergo for emergency HPP restoration

MOSCOW. Dec 22 (Interfax) - The European Bank for Reconstruction and Development (EBRD) intends to approve the provision of up to 200 million euros in a sovereign-guaranteed loan to Ukrhydroenergo, Ukraine's largest hydropower generating company, on January 24, 2024 to finance the supply of equipment for its hydropower plants and as emergency liquidity support.

The loan consists of up to 150 million euros to finance supply of critical equipment for the Dnieper Hydropower Plant (HPP) and Middle Dnieper HPP and up to 50 million euros for the emergency liquidity support for the company, Ukrainian media quoted the EBRD as saying in a statement on its website.

The loan facility will be divided into two tranches of up to 100 million euros each with one tranche to be funded by the EBRD and the other one using funds advanced by Italy to the EBRD for that purpose.

The project's implementation will enhance Ukraine's energy security by financing the replacement of four hydropower generation units at the Dnieper HPP, it said.

The total production capacity of the respective equipment is expected to increase by 16%. The project should also enable Ukrhydroenergo to replace old gantry cranes at the Middle Dnieper HPP, which are crucial for maintaining the hydropower plants efficiently. Additionally, the emergency liquidity support will help Ukrhydroenergo strengthen its financial standing, it said.

In November 2023, Ukrhydroenergo CEO Igor Sirota told Ukrainian media the company was working to raise about 330 million euros from the EBRD, the European Investment Bank (EIB), and the World Bank for reconstruction and development projects.

As reported, Ukrhydroenergo received a 133 million euro tranche from the EIB in December to continue financing the Hydro Power Plants Rehabilitation Project.