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€200 million loan to Ukrhydroenergo for hydropower rehabilitation from EBRD and Italy
- 10 months ago (2024-02-21)
- David Flin
The European Bank for Reconstruction and Development (EBRD) along with the Italian Government have signed a €200 million loan package for hydropower company Ukrhydroenergo to restore and maintain its facilities that have come under repeated attack by Russia in its illegal invasion of Ukraine.
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The EBRD loan of €100 million is supported by a parallel loan of €100 million from Italy to finance the purchase of critical equipment for Dnipro and Seredniodnipro, two of Ukrhydroenergo’s hydropower plants, as well as addressing the company’s liquidity needs.
EBRD said that since the Russian invasion began in February 2022, Ukrhydroenergo assets have suffered over 50 military strikes, causing significant damage to some hydropower plants, in addition to the damage inflicted by Russia to the Nova Kakhovska dam and the Kakhovska hydropower project in southern Ukraine in June 2023.
Odile Renaud-Basso, President of the EBRD, said: “Supporting Ukraine’s electricity production and the repairs and maintenance of its vital infrastructure in wartime is a key investment priority for the EBRD. This loan package will support stable, uninterrupted, and reliable electricity generation, which is a cornerstone for the entire Ukrainian economy.”
Before the Russian invasion, Ukrhydroenergo operated nine hydropower plants on the Dnipro and Dniester rivers, with a total installed capacity of 6.1 GW. As a result of the destruction of the Kakhovska hydropower plant and the reduction in production capacities of other hydropower plants, the company’s current operating has been reduced to 5.8 GW.