The European Investment Bank (EIB) will grant Ukraine a credit worth EUR 200 million for the renovation of hydropower plants.
Energy and Coal Industry Minister of Ukraine Yuriy Boiko and EIB Director Heinz Olbers signed a relevant agreement between the EIB and Ukrhydroenergo in Brussels on Friday.
EIB Vice President Anton Rop said in a commentary passed on Friday to Interfax-Ukraine that this project is the first in the bank's cooperation with Ukraine and is aimed at increasing the share of electricity from renewable sources.
"This will help to reduce the alternative consumption of fossil fuels, which involves a significant reduction in emissions of CO2, as well as will help Ukraine to meet its commitments in climate change," the EIB vice president said.
According to him, the funds will be assigned for the reconstruction and upgrading 22 hydraulic facilities of Ukrhydroenergo, located on the Dnipro River. It is expected that as a result of the implementation of the project, the capacity of the power plants will expand by 100 megawatts, their operational stability and reliability will improve.
It will also prolong the economic life of these facilities and enhance the performance of the Ukrainian energy system that will help synchronize it with the European system of electricity transmission in the medium term. (source)
The total expected cost of the project is EUR 690 million, including EUR 400 million lent by the EBRD and EIB on equal terms, the rest will be covered by Ukrhydroenergo.