| Finance
EBRD The European Bank for Reconstruction and
Development (EBRD) has signed a €200 million loan package to Ukraine’s main hydropower generation company, Ukrhydrenergo, in an effort to strengthen Ukraine’s energy security after repeated attacks on civil power infrastructure by Russia. The EBRD loan of €100 million, backed by a concessional parallel loan of €100 million from Italy, will provide emergency support to restore and maintain the company’s electricity production needs. The EBRD, which has now deployed €4 billion in Ukraine since the start of the war, works closely with partners on its lending there. The proceeds of this loan will finance the procurement of critical equipment for two of the state-owned company’s hydropower plants, Dnipro HPP and Seredniodnipro HPP as well as addressing Ukrhydroenergo’s liquidity needs. Ukrhydroenergo is one of Ukraine’s main suppliers
of renewable energy. Since the Russian invasion in February 2022, its assets have suffered more than 50 military strikes, significantly damaging some hydropower plants and racking up around half a billion euros of costs – on top of the extensive cost of destruction caused to the Nova Kakhovska dam and Kakhovska HPP in southern Ukraine on 6 June 2023. “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,” said EBRD President Odile Renaud-Basso.
“Italy has been a staunch supporter of Ukraine since the beginning of the Russian aggression. Now, we are proudly providing a €100 million loan to support the energy sector. In our capacity as G7 Presidency, we will keep mobilising international support to this key area,” said Italian Deputy Prime Minister and Minister of Foreign Affairs and International Cooperation, Antonio Tajani. “This agreement is an important step towards modernising and developing Ukrainian hydropower facilities. It demonstrates the international community’s recognition of the importance of our projects for ensuring a stable energy supply in Ukraine,” Ihor Syrota, Chief Executive Officer of Ukrhydroenergo commented, while expressing gratitude to the government of Italy and the EBRD. Before the Russian invasion, Ukrhydroenergo
operated nine hydropower plants on the Dnipro and Dniester rivers, with a total installed capacity of 6.1GW. Due to the destruction of the Kakhovska hydropower plant and the reduction in production capacities of others, the company’s total operating capacity is currently limited to 5.8GW. The EBRD finance will support the replacement of four hydropower generation units at the Dnipro hydropower plant that were worn out due to extensive exploitation and damage caused by missile strikes, as well as two gantry cranes at the Seredniodnipro hydropower plant, which are crucial for maintaining the hydropower plants efficiently. The EBRD’s Board of Directors has granted a
derogation from the Bank’s Environmental and Social Policy as the war makes it hard to carry out environmental and social due diligence; an
independent environmental and social audit will be undertaken within 12 months of the lifting of martial law. Energy security is one of the EBRD’s five investment priorities in Ukraine (along with vital infrastructure, food security, trade and support for the private sector), and the bank has provided significant finance for electricity transmission company Ukrenergo and gas company Naftogaz. The EBRD has been working with Ukrhydroenergo since before the war on rehabilitating hydro-units on the Dnipro cascade. In other news, the EBRD is also providing a €28 million sovereign loan to modernise and rehabilitate the Enguri hydropower plant in Georgia. The financing extended to the plant’s operating company, Engurhesi, will be complemented by a grant of €7.05 million from the European Union. This financing package will fund long-term structural stability works of the Enguri dam, repairs to the underground tunnel and penstock to ensure a more reliable power generation and grid system. In addition, the investment will reduce water leakages in the headrace tunnel and enable additional renewable energy production. Funds will also be used to construct vital infrastructure, such as roads to monitor the dam, improve the safety and reliability of the electricity grid and energy generation, as well as create a fish passage downstream of the Enguri dam. Built in the 1970s, an energy complex comprising the Enguri hydropower plant and the Vardnili hydropower plants, meets approximately 30 per cent of the nation’s electricity needs and are key to the country’s energy infrastructure, providing a steady supply of power and stimulating economic growth. The EBRD has been involved in the rehabilitation of the Enguri hydropower plant since 1998, helping to reduce reliance on electricity imports, improve energy security, and support the country’s commitment to a greener and more sustainable future. Overall, the EBRD and its donors have supported the Enguri plant with financing totalling €205 million.
OPEC funding The OPEC Fund for International Development (the
OPEC Fund) has signed its first loan agreement with the Kingdom of Bhutan, in what has been described as a historic milestone in their partnership. The US$50 million loan will support the development of two
www.waterpowermagazine.com | January 2025 | 25
Above: Flooding after dam breach during the war in Ukraine. The EBRD and Italy are helping to finance critical hydropower repairs
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45
