Parliament Ratifies Agreement with European Investment Bank on Ukrenergo Loan

The Parliament of Ukraine adopted the Law  “On the Ratification of the Guarantee Agreement between Ukraine and the European Investment Bank” (the Project "Substation Reliability Enhancement Programme"), developed by the Ministry of Finance and National Power Company “Ukrenergo”.

"The main task of the Law on the Ratification of the Guarantee Agreement between Ukraine and the European Investment Bank (the Project "Substations Reliability Enhancement Programme") adopted today is to create legal grounds for using the European Investment Bank loan of EUR 136 million to implement Ukrenergo's Investment Project. Such a decision makes it possible to increase the reliability and ensure the sustainable operation of the existing power grid. In addition, it will help reduce the costs on its maintenance and operation,"- Deputy Minister of Finance Oleksandr Kava said.

Adoption of the Law of Ukraine will ensure the fulfillment of the internal procedure on providing the consent to be bound by the Guarantee Agreement between Ukraine and the European Investment Bank, as well as determine the date of coming into force of this Guarantee Agreement.

The Project "Substations Reliability Enhancement Programme" envisages the reconstruction of 12 existing 330 kV and 750 kV power substations of the Dnipro regional power system of the National Power Company Ukrenergo and the introduction of the latest automated process control systems at the substations. This, in turn, will not only bring the substations to a modern technological level but also contribute to the sustainable operation of Ukraine's power grid and strengthen the country's energy security.

The project is part of a broader modernization program that includes the reconstruction of 33 substations throughout Ukraine and is co-financed by KfW (the Reconstruction Credit Institute) and the European Bank for Reconstruction and Development.