EBRD will provide Ukrhydroenergo with 200 million euro for restoration of hydroelectric power stations

MOSCOW. Jan 29 (Interfax) - The European Bank for Reconstruction and Development (EBRD) has approved a loan to PJSC Ukrhydroenergo under state guarantees of up to 200 million euro.

Citing the EBRD website, Ukrainian media reported that the loan consists of up to 150 million euro to finance the supply of critical equipment for the Dnieper and Sredneprovskaya hydroelectric power stations and up to 50 million euro for emergency support of the company's liquidity.

The funds will be allocated in two tranches of 100 million euro each.

The EBRD said that the project will improve Ukraine's energy security by financing the replacement of four of the Dnieper hydroelectric station's hydroelectric units, which were worn out as a result of intensive use since 2003 and subsequent damage. The production capacity of the affected equipment should increase 16%.

The project will also allow the company to replace old gantry cranes at the Sredneprovskaya HPP, which are critical for efficient maintenance of the hydroelectric power station.

Ukrhydroenergo operates all the large hydroelectric power plants located on the Ukrainian sections of the Dnieper and Dniester rivers.