The corresponding agreement for the first tranche was signed on July 10 in Rome on the sidelines of the Ukraine recovery conference URC2025. The total loan amount is 200 million, to be provided through two or more finance agreements.
The European Investment Bank is providing Ukrhydroenergo with targeted credit resources for the recovery and modernization of Ukrainian hydropower plants. A part of the funds will be used to restore three of the company's hydropower plants that were damaged as a result of russian terrorist attacks. The remaining funds will be allocated for urgent emergency repairs in case of potential new damage to other Ukrhydroenergo facilities.
This became possible thanks to the joint and coordinated efforts with the Cabinet of Ministers of Ukraine, the Ministry of finance, the Ministry of economy, and the Ministry of energy, which provided comprehensive support and facilitated the conclusion of the loan agreement with the European Investment Bank.
This tranche will provide a strong impetus for the company to continue its systematic efforts to restore lost generation capacity and enhance the resilience of hydropower facilities amid ongoing military aggression an effort that is critically important for the stability and sustainability of Ukraine's energy system.
The loan was made possible thanks to a financial guarantee from the European Commission under the new Ukraine Facility program. This flagship EU initiative, with a budget of 50 billion for 2024-2027, is designed to ensure stable support for Ukraine's recovery, reconstruction, and modernization.
The guarantee agreement with the EU enabled the EIB to commit substantial investments in Ukraine's energy sector and other critical projects, despite the war-related risks. The loan to Ukrhydroenergo is one of the first projects under the Ukraine Facility, and its successful implementation sets an important precedent.
«Restoring Ukraine's energy resilience is central to its recovery. With this 120 million loan to Ukrhydroenergo, we are helping to rehabilitate critical hydropower infrastructure that provides clean, reliable electricity to millions of Ukrainians. This is not only an investment in energy security it is an investment in people, in stability, and in Ukraine's sustainable future», said Teresa Czerwińska, EIB Vice-President.
For Ukrhydroenergo, this financial agreement is not only about recovery. It is about long-term vision and the future. It will help to strength hydropower infrastructure, making it more resilient to threats and better adapted to modern challenges.
For the first time in its Ukrhydroenergo is receiving a loan supported by guarantees from the European Union. This is a significant vote of confidence in Ukrhydroenergo as a reliable partner capable of operating effectively even under wartime conditions. We ensure the continuity of all processes from daily operations to the implementation of strategic projects.
Ukrhydroenergo is grateful to the European Investment Bank for its long-standing fruitful cooperation and continuous support for Ukraine during the most difficult times.
For information:: Ukrhydroenergo has a long and successful track record of partnership with the European Investment Bank. Since 2014, the company has implemented contracts with the EIB focused on the rehabilitation of hydro units. In December 2023, Ukrhydroenergo received a 133 million tranche as part of the large-scale "Hydropower Plants Rehabilitation" project. Initially, this initiative was focused on modernizing equipment and improving the efficiency of hydropower facilities. However, in the context of the full-scale war, and with the EIB's approval, the funding is now also being used to restore damaged hydro-mechanical and hydro-power equipment and to recover lost generation capacity following massive missile attacks by the russian federation.
