The European Bank for Reconstruction and Development (EBRD) has approved the provision of a sovereign-guaranteed loan of up to EUR 200 million to PJSC Ukrhydroenergo to finance the supply of critical equipment to its hydroelectric power plants and support the company's liquidity.
"The loan consists of up to EUR 150 million to finance supply of critical equipment for the Dnipro and Seredniodnipro hydro power plants, and up to EUR 50 million for the emergency liquidity support for the company," the bank said on its website.
The loan facility will be divided into two tranches of up to EUR 100 million each with one tranche to be funded by EBRD and the other one using funds advanced by Italy to EBRD for that purpose.
The bank said that the implementation of the project will enhance Ukraine's energy security by financing the replacement of four hydropower generation units at the Dnipro hydro power plant (HPP), which were worn out due to extensive exploitation since 2003 and damages caused by missile attacks on the Dnipro HPP.
The total production capacity of the respective equipment is expected to increase by 16%. The project will also enable Ukrhydroenergo to replace old gantry cranes at the Seredniodnipro HPP, which are crucial for maintaining the hydropower plants efficiently. Additionally, the emergency liquidity support will help the company strengthen its financial health and operations, especially on the back of increased public service obligations.
As Ihor Syrota, CEO of Ukrhydroenergo, said in an interview with Interfax-Ukraine in November 2023, the company was working to attract approximately EUR 330 million from the EBRD, the European Investment Bank (EIB) and the World Bank for restoration and development projects in general.
As reported, in December, Ukrhydroenergo received a tranche of EUR 133 million from the EIB for the Hydro Power Plants Rehabilitation Project.
