Finance

Ukrhydroenergo and EIB sign MOU to rehabilitate three Ukrainian hydro electric plants

Ukrhydroenergo and EIB sign MOU to rehabilitate three Ukrainian hydro electric plants
(photo courtesy Ukrhydroenergo)

Ukrhydroenergo and the European Investment Bank have signed a Memorandum of Understanding for cooperation on rehabilitation of three hydropower projects in Ukraine.

The memorandum was signed by EIB Vice President Tereza Chervinska, responsible for operations in the region, and Ukrhydroenergo General Director Ihor Syrota, in the presence of the Prime Minister of Ukraine Denys Shmyhal and EIB President Nadia Calvinho.

The MOU defines the intentions of the company and the bank to promote implementation of the “Recovery of equipment to increase the operational stability and reliability of hydroelectric power plants” project. The project is aimed at providing support for the liquidity and stability of the work of Ukrhydroenergo. The possibility of allocating a loan in the amount of about €100 million (US$108.5 million) is being considered.

The parties will cooperate for technical re-equipment of three hydroelectric power stations by replacing hydrotechnical and hydropower equipment at Kanivska, Kremenchutska and Dniprovska.

“We are grateful to the EIB for unwavering support and significant contribution to the energy security of Ukraine. Due to the actions of Russian terrorists, the hydropower industry of Ukraine lost about 2.5 thousand MW of capacity. Thanks to the efforts of the Government and partners, more than 1.5 thousand MW have already been restored. Recovery is ongoing and will accelerate. We appreciate the active role and support that the EIB provides to projects in key sectors of the Ukrainian economy,” Prime Minister of Ukraine Denys Shmyhal said.

In turn, General Director of Ukrhydroenergo Ihor Syrota noted: “The European Investment Bank has been our reliable partner for many years. We appreciate the support that the bank has already provided to Ukrainians and thank you for the cooperation and financing of Ukraine’s reconstruction projects during the ten years of war. The signing of this memorandum is another important step in ensuring the energy security of our country as a whole, as well as the sustainable development of the hydropower industry in particular.”

In December 2023, Ukrhydroenergo received a tranche of €133 million ($143.2 million) from EIB for the complex project “Rehabilitation of Hydroelectric Power Stations.” The allocated funds are aimed at the modernization and reconstruction of hydropower facilities owned by the company, as well as at the restoration of damaged power facilities and capacities lost as a result of shelling.

In addition, Hydro Review reported in February 2024 that the European Bank for Reconstruction and Development signed a loan package for Ukrhydroenergo, backed by a concessional parallel loan from Italy, to provide emergency support to restore and maintain the company’s electricity production needs.