Business news from Ukraine


13 May , 2021  

The Cabinet of Ministers of Ukraine has signed a framework agreement with the French government on loan financing of projects to modernize water supply systems in Kyiv and Luhansk region in the amount of EUR 70 million each.
According to the draft decree of the Cabinet of Ministers on the signing of a framework agreement, a concessional treasury loan in the amount of EUR 70 million will be directed to the reconstruction of water supply facilities of the Dnipro and Desnianska waterworks. The project will improve the quality of water for a quarter of the capital’s population, says the government’s press service.
The second loan in the amount of EUR 70 million will finance a project to reconstruct the infrastructure for the production and distribution of drinking water at Popasna District Vodokanal utility company. As a result of modernization, it is planned to achieve a volume of water flow of 135,000 cubic meters per day, which will provide drinking water for more than 20 settlements.
Under the terms of the agreement, the loan is provided for 40 years, including a 15-year grace period. The loan rate is 0.0092% per annum. The condition for the provision of funds is the purchase of goods and services from France in the amount of at least 70% of the loan amount for the implementation of the project.
In addition, in order to obtain a loan, contracts between French suppliers and the project implementer must be accepted for execution by the end of 2022, and the loan must be selected by the end of 2026.