President of Ukraine Volodymyr Zelensky during a meeting with President of the European Bank for Reconstruction and Development (EBRD) Odile Renaud-Basso invited a financial institution to join the development of infrastructure projects and privatization in Ukraine, according to the website of the head of state.
“It is very important to support infrastructure projects in Ukraine, because high-quality roads, bridges and social infrastructure are important for every Ukrainian. Thanks to infrastructure projects, we created 190,000 jobs at a time when many were losing their jobs due to the COVID-19 pandemic,” Zelensky said.
The head of state also added that “privatization is one of the priorities today” and invited the EBRD to join this direction.
In addition, issues of development of the agricultural sector of Ukraine were discussed at the meeting. “It is advisable to invest in agriculture. Ukraine needs a lot of investment in the modernization of irrigation infrastructure. Its restoration will be a powerful step in the development of agriculture and Ukraine as a player in the international agricultural market,” Zelensky said.
In addition, Zelensky informed Odile Renaud-Basso about the continued implementation of the reform of law enforcement agencies, about the signing of a law in Ukraine on the creation of the Bureau of Economic Security. The interlocutors also discussed the reform of the energy sector, they talked about the implementation of energy efficiency programs, in particular, the introduction of energy-saving technologies in housing.
In addition, the negotiating parties discussed the continuation of the reform of the financial and banking sectors of Ukraine.
“Ukraine and the EBRD have good relations and many important projects in which Ukraine puts its soul, and the EBRD – its faith and money. We consider you one of the strategic financial partners. These relations are very important for us,” Zelensky said.
In turn, the EBRD President welcomed the reforms that are being implemented in various sectors of the Ukrainian economy.
The meeting was attended by Minister of Finance Serhiy Marchenko, Deputy Head of the President’s Office Yulia Svyrydenko, Advisor to the head of the President’s Office Tymofiy Mylovanov, and Head of Ukravtodor Oleksandr Kubrakov.
The State Agency for Roads of Ukraine (Ukravtodor), within the framework of a joint anti-corruption project, will reconfigure its management and procurement practices in accordance with the recommendations of the consultants of the European Bank for Reconstruction and Development (EBRD).
On Tuesday, March 12, a kick-off meeting was held on the development and implementation of the Anti-Corruption Action Plan for the road industry of Ukraine within the framework of the specified joint project, Ukravtodor said on its Telegram channel.
The loan agreement between Ukravtodor and the EBRD worth EUR 450 million, signed in December last year, provides for the implementation of four important reforms for the road industry: procurement reform, improved traffic safety, development of infrastructure for electric transport and anti-corruption reform.
“We highly appreciate the initiative of Ukravtodor to implement this project, because it should result in a completely updated management system for the road industry. In case of a successful launch of an anti-corruption pilot project in Ukravtodor, this experience can be scaled up to other business entities and public sector organizations who are partners of the EBRD in Ukraine,” head of transport projects of the EBRD Andriy Tsokol is quoted as saying in the message.
The Basel Institute on Governance (Switzerland), an international non-profit anti-corruption organization that works in partnership with the Ukrainian law firm Sayenko Kharenko, has been involved in the work on the implementation of anti-corruption reform.
“By May of this year, the consultants will study and analyze the procurement and management processes in Ukravtodor from the point of view of preventing corruption. Based on the study, it is planned to finalize and approve the Anti-Corruption Action Plan in July 2021. Until 2023, the consultant will accompany the implementation of the Plan in Ukravtodor and its subdivisions,” the message reads.
Head of Ukravtodor Oleksandr Kubrakov also noted that over the past year the agency managed to create uniform procurement rules in the industry, introduce independent technical supervision and additional control of design decisions.
“We worked to prevent corruption risks by digitalizing management processes and improving executive and financial discipline. A pilot project with the EBRD gives a chance for these changes to become irreversible,” he stressed.
As reported, Ukravtodor initiated the inclusion of the Anti-Corruption Pilot Project in the loan agreement with the EBRD in the spring of 2020. The terms of the agreement provide for the mandatory implementation of reforms in order to receive credit tranches.
ANTI-CORRUPTION, ANTI-CORRUPTION PROJECT, EBRD, LAUNCHES, LAUNCHES PROJECT, STATE AGENCY FOR ROADS
The European Bank for Reconstruction and Development (EBRD) is providing a loan of up to EUR 13.8 million in the form of two allocated tranches to PJSC Kokhavynska Paper Mill (Lviv region) to finance the construction of a new production and warehouse building.
According to a report on the EBRD website, the project involves the construction of a plant for the production of paper goods based on cellulose.
“The project assumes the construction of a facility for the production of pulp-based tissue products to meet growing demand for high quality tissue products. It will enable the company to enter the higher quality retail tissue segment, double its tissue production capacity and improve operating efficiency. The CAPEX for capacity expansion comprises tissue and converting machines, the construction of an industrial production and storage workshop,” the bank said on its website.
The total cost of the project is EUR28.5 million.
The shareholders of the plant approved raising a EBRD loan in the amount of up to EUR17 million to finance the construction of a new production facility at a meeting on November 10.
According to the decision, the property of the factory, the market value of which exceeds 50% of the value of the assets (according to the latest financial statements), will be pledged on the loan.
The European Bank for Reconstruction and Development (EBRD) on December 1 approved the allocation of up to EUR 25 million to Pravex Bank (Kyiv) under the guarantee of the parent company Intesa Sanpaolo S.p.A. (Italy) to finance small and medium-sized enterprises (SMEs).
“The project will support Pravex Bank to sustain portfolio growth at least in line with the market. The proposed project will channel much-needed funding support to real-economy clients helping to mitigate the economic consequences of the pandemic crisis,” the EBRD said on its website.
This crisis response project is aimed to bridge a liquidity gap due to adverse market conditions related to COVID-19 crisis, the press release reads.
The European Bank for Reconstruction and Development (EBRD) on November 10 approved the provision of a four-year amortising senior unsecured loan of up to EUR 25 million equivalent to OTP Bank (Kyiv) to finance micro, small and medium-sized enterprises (MSMEs), according to the EBRD website.
“The project will enable the company to finance long-term investments of Ukrainian MSMEs in upgrading their technology and equipment necessary to meet EU standards in terms of product quality, health and safety measures and environmental preservation,” the bank said.
In addition to long-term financing, eligible sub-borrowers will receive technical assistance funded by the European Union and grant support in the form of investment incentives upon the completion of their investment projects.
The European Bank for Reconstruction and Development (EBRD) and Dnipro Municipal Energy Service Company (Dnipro) have signed a loan agreement on the allocation of EUR25 million in a loan to improve the energy efficiency of 98 public buildings, including 67 kindergartens, 27 schools and four clinics.
“Thanks to the agreement between Mayor Borys Filatov and the EBRD, today we’ve signed a loan to finance the second stage of a large energy saving project in the city’s buildings. This will create conditions that are more comfortable for the residents of our city,” the bank’s press service quotes deputy mayor of the city Eduard Pidlubny.
“The new loan builds on the successful implementation of a pilot project with Dnipro’s energy management company in 2020. Under the pilot financed by the EBRD, the E5P and the Clean Technology Fund, 33 schools and 48 kindergartens have been refurbished offering more comfort and greater energy efficiency,” the bank said on its website.
“The new financing will allow the city to maintain the pace of its energy efficiency investments in public buildings and will set an example for other Ukrainian cities to follow. Once the projects are completed, the city would have renovated almost 200 public buildings, the largest such effort in Ukraine,” Mark Magaletsky, the EBRD Deputy Director for Ukraine, said.
The EBRD’s board of directors reportedly approved the project last week.
The loan has a term of 13 years, including a grace period of up to three years, with 20 equal payments every six months. The loan will be secured by the city’s full municipal guarantee, the bank said.
