Ukraine and the World Bank are discussing preparations for the launch of five joint projects, the Finance Ministry said following a video conference between minister Serhiy Marchenko and World Bank Vice President for Europe and Central Asia Anna Bjerde.
“The Finance Minister, together with the World Bank Vice President, discussed plans for cooperation for the near future – preparation for the launch of five new joint projects,” the Finance Ministry said in a release.
According to it, it is planned to submit to the bank board of directors financing for the projects on emergency response to COVID-19 and vaccination in Ukraine, on improvement of higher education in Ukraine for the sake of results, Kyiv urban mobility, on establishment of hybrid systems for production electricity in Ukrhydroenergo and additional financing of the project for access to long-term financing for Ukreximbank.
“At present, the drawdown of the facility within the portfolio of the International Bank for Reconstruction and Development (IBRD) is the highest compared to other international financial institutions – as of January 1, 2021, it amounted to $ 693.55 million, and this is 2.3 times more, than a year earlier,” the ministry said.
In addition, the parties discussed new investment projects for the development of transport infrastructure.
“This year, the implementation of two common road construction projects is coming to an end. That is why we would like to continue successful work in this direction and talk about preparing a new project for Ukravtodor,” the minister said.
Ukrainian President Volodymyr Zelensky by his decree ordered to create the coordination council to implement the Big Construction project led by Deputy Head of the President’s Office Kyrylo Tymoshenko.
“To establish a coordination council for the implementation of the Big Construction program as an advisory body under the President of Ukraine, which main task is to monitor the situation and develop proposals for implementing effective measures to implement the Big Construction program,” Zelensky said in decree No. 246/2020 dated June 23, posted on the president’s website.
By the same decree, Zelensky decided to establish that this coordination council is authorized to receive the necessary information, documents and materials from the government and local governments, enterprises, institutions, organizations; invite to meetings and hear information from representatives of ministries, other central and local executive authorities, heads of state-owned enterprises, institutions and organizations on issues within its competence.
Zelensky by this decree approved the staff of the council.
So, Tymoshenko was appointed the head, and the council also includes Minister of Infrastructure of Ukraine Vladyslav Krykliy, Minister of Health Maksym Stepanov, Minister of Development of Communities and Territories Oleksiy Chernyshov, Head of the State Automobile Roads Agency Oleksandr Kubrakov, First Deputy head of the President’s Office Serhiy Trofimov, and Deputy Head of the President’s Office Yulia Sokolovska.
The coordination council also includes Director General of the Directorate for Regional Policy and Decentralization of the Government of Ukraine Olha Buhai, Director of the Department for Infrastructure and Technical Regulation of the Secretariat of the Cabinet of Ministers Natalia Kozlovska (by her consent), Advisor to the head of the Government of Ukraine Mykhailo Podoliak and Advisor to the Minister of the Cabinet of Ministers Olena Symonenko (by consent).
This decree comes into force on the day of its publication.
The Cabinet of Ministers of Ukraine has approved a draft framework agreement with the government of Denmark regarding the general conditions and rules, organization measures and financial conditions of the implementation of the Danida Business Finance programme in Ukraine.
The respective government resolution was approved at a meeting on February 20.
“In order to strengthen cooperation between the government of Ukraine and the Kingdom of Denmark, the Ministry of Foreign Affairs of Denmark, under Danida Business Finance, agreed to provide funds to invest in sustainable infrastructure projects that are implemented by Danish suppliers,” according to the framework agreement, which is available to Interfax-Ukraine.
This program involves the provision of interest-free loans by the Kingdom of Denmark to the Government of Ukraine, or economic entities under government guarantees, to finance projects related to renewable energy, energy efficiency, water supply and water treatment.
The direct creditor will be a commercial bank or a financial institution with a representative office in the Kingdom of Denmark, which has concluded an agreement with the Danish Ministry of Foreign Affairs.
The projects will be selected in accordance with the Ukraine 2020 Sustainable Development Strategy and approved by the Danida Program Committee under the Ministry of Foreign Affairs of Denmark.
The benchmark cost of one project is EUR 100 million. Projects worth less than EUR 13.5 million are not eligible for financing, except for separately selected projects. A loan can cover up to 100% of the value of the facility, and no less than 35%.
Along with the financing fee, there is also no export credit premium and bank margin. Borrowing will be provided in euros or U.S. dollars. The repayment period is up to 10 years after the completion of a facility, for which the loan is taken.
Danida Business Finance provides soft loans for funding of sustainable infrastructure projects in energy, water and sanitation, which cannot otherwise be financed on commercial terms in developing countries tied to transfer of technology and knowhow through Danish companies. Danida Business Finance offers technical assistance and support to authority-to-authority cooperation, if necessary, to transfer institutional knowledge in the relevant sector area.
