Ukrhydroenergo secures €200 million financial support from EBRD and Government of Italy

28 February 2024

Ukrhydroenergo has secured a €100 million loan from the European Bank for Reconstruction and Development (EBRD), and a parallel concessional loan of €100 million from Italy, to support the recovery and maintenance needs of the company's hydroelectric infrastructure.

The Loan Agreement inked between Ukrhydroenergo and EBRD aims to fund the "Emergency Recovery of Hydropower Plants" project. Additionally, a consortium comprising Ukrhydroenergo, the Government of Italy, Cassa Depositi e Prestiti S.p.A., and the EBRD signed an Accession Statement and a Guarantee Agreement, further solidifying the financial backing for the project.

The signing ceremony saw the participation of key figures including Dmytro Kuleba, Minister of Foreign Affairs of Ukraine; Antonio Tajani, Deputy Prime Minister and Minister of Foreign Affairs and International Cooperation of Italy; Odile Renaud-Basso, President of the EBRD; Ihor Syrota, CEO of Ukrhydroenergo; and Antonella Baldino, authorized representative of Gruppo Cassa Depositi e Prestiti.

Italian Deputy Prime Minister Antonio Tajani underscored Italy's commitment to supporting Ukraine, stating: "Italy has been a staunch supporter of Ukraine since the beginning of the Russian aggression. Now, we are proudly providing, through the actors of our Development Cooperation, a €100 million loan to support the energy sector. In our capacity as G7 Presidency, we will keep mobilising international support to Kyiv, also in this key area.”

Ukrainian Prime Minister Denys Shmyhal expressed gratitude for Italy's support during challenging times: “The joint efforts of the Government of Ukraine, the Government of Italy, the EBRD, and Ukrhydroenergo will contribute to ensuring sustainable energy supply for our citizens and key economic sectors, regardless of external challenges,” he said. “Ukrainian hydroelectric power, due to the actions of Russian terrorists, lost about 2500MW of capacity, of which more than 1500MW has already been restored. Restoration continues, and with the support of partners, it will accelerate. This agreement is another proof of our confidence in the future of Ukraine as a strong and resilient state.”

EBRD President Odile Renaud-Basso emphasized the strategic significance of the loan package, stating: "Supporting power generation in Ukraine during the war is a key investment priority for the EBRD." She highlighted the package's immediate benefits for businesses, the economy, and communities, while also noting its long-term importance for Ukraine's recovery and reconstruction.

Ihor Syrota, CEO of Ukrhydroenergo, hailed the agreement as a milestone in modernizing and developing Ukrainian hydropower facilities. He expressed gratitude to partners for their trust, affirming that the support would facilitate the achievement of strategic goals in advancing sustainable and efficient energy in Ukraine.

The €200 million credit line, backed by state guarantees, will be disbursed in two tranches. It includes funds for critical equipment supply to key hydropower plants and emergency liquidity support to ensure operational stability. 

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