The European Bank for Reconstruction and Development (EBRD) and PJSC "Ukrhydroenergo" (the "Company") signed a 75 million Loan Agreement to finance the Modernization and Restoration of Hydro Power Plants Facilities of PJSC "Ukrhydroenergo" Project (the "Project").
The loan is supported by an EU guarantee under the Ukraine Investment Framework (UIF), which is a tool for unlocking financing for Ukraine's recovery and long-term growth.
The financing package also includes up to 20 million in investment grants from international donors. The estimated total project cost, including Ukrhydroenergo's own funds, is 120 million.
Ukrhydroenergo has experience in cooperating with international financial institutions and implementing investment projects in hydropower sector. Raising funds during wartime is an important part of maintaining Ukraine's energy system stability.
Valentyn Gvozdiy, Chairman of the Supervisory Board of PJSC "Ukrhydroenergo", pointed out:
"The attracted EBRD financing supported by the EU guarantee is an important confirmation of international partners' confidence in Ukrhydroenergo and the quality of the Company's corporate governance. The Project will enhance reliability of hydropower plants and, accordingly, stability of Ukraine's power system. I would like to thank the members of the Supervisory Board, the Strategic Development Committee of the Supervisory Board, and the Executive Body for the effective and timely coordination of the process. I am also grateful to the EBRD for its trust, to the European Union for its guarantee support, and to the Shareholder for the consistent support of the Company".
The Project funds will be used to cover procurement of critical equipment for selected hydro power plants of the Company, namely:
- hydropower equipment damaged as a result of russian military aggression;
- hydromechanical equipment for refurbishment;
- equipment needed to respond to emergencies during wartime (contingent emergency response mechanism).
The goal of the Project is to support stable operation of the Company under martial law, as well as to carry out emergency replacement and repair of equipment to improve operational reliability and uninterrupted operation of hydropower plants.
Bogdan Sukhetskyi, Interim Director General of PJSC "Ukrhydroenergo", pointed out:
"The financing will enable timely procurement and commissioning of critical equipment, as well as creation of emergency reserve stock of equipment to quickly respond to emergencies. These funds are important for keeping the Company running and meeting its business goals in tough conditions."
The Project will also include training programmes that will focus on professional development for engineering staff, improving ESG practices and developing a gender action plan. The Project completion is scheduled for 2030.
Preparation of the Project and agreement of loan conditions were carried out in cooperation with the Cabinet of Ministers of Ukraine, the Ministry of Economy, Environment and Agriculture of Ukraine, and the Ministry of Finance of Ukraine.
The equipment procured shall comply with EU environmental and safety standards. The Project is fully aligned with the Paris Agreement and meets the EBRD approach within the Resilience and Livelihoods Framework supporting essential infrastructure under challenging conditions.
