The European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) are ready to provide a targeted loan in the amount of EUR 900 million to Ukraine to develop the road sector, acting Head of the State Automobile Roads Agency of Ukraine (Ukravtodor) Slawomir Nowak has said. “I have already held negotiations with the EBRD and the EIB. A new credit line will be opened for Ukraine in the amount of EUR 900 million,” he said.
According to Nowak, the negotiations were very difficult, but trust in the state and its managers ultimately allowed for a positive solution.
“Within the framework of this new credit line, we will also offer to finance the Weight-in-Motion system at the next stage,” the acting chief of Ukravtodor said.
Nowak also said that he recommended that Minister of Infrastructure Vladyslav Krykliy eararks funds from the Road Fund allocated for road safety to the installation of the Weight-in-Motion (WiM) system.
As reported, Ukravtodor launched in test mode the first two WiM points on the Kyiv-Chop highway.
On September 11, the Rada adopted at second reading a bill allowing automatic recording of violations during weight monitoring on roads.
Weight-in-Motion (WiM) systems will fulfill a function of pre-selection for inspectors of the State Service of Ukraine for Transport Safety until a law allowing automatic weight and weight control on roads is passed.
Ukravtodor previously planned in October to launch the first six WiM points at the entrances to Kyiv. In general, it is planned to install up to 100 WiM points.
The board of directors of the European Bank for Reconstruction and Development (EBRD) has approved the issuance of up to $120 million to one of the largest Ukrainian agricultural groups, Kernel, on two projects within a syndicated loan to finance working capital.
According to information on the EBRD’s website, the decision was made on September 4.
Within the framework of one project, in particular, Kernel may receive up to $80 million to finance working capital, which is associated with the procurement, storage, transportation and sale of grains for export.
The total project cost is $300 million.
In addition, under another project, the EBRD intends to issue up to $40 million in the form of participation in a syndicated loan to finance Kernel’s working capital, which is related to the purchase, storage, processing, transportation of oilseeds and vegetable oil, as well as sale for export.
The cost of the entire project is estimated at $390 million.
Kernel is the world’s largest producer and exporter of sunflower oil, the leading producer and supplier of agricultural goods from the Black Sea region to the world markets.
The European Bank for Reconstruction and Development (EBRD) will provide investment up to EUR 149 million to Ukrenergo National Energy Company to acquire up to 26 new transformers and carry out the automation and upgrade of 12 high-voltage substations. “The investment will help Ukrenergo upgrade its key transmission infrastructure required for the synchronization with the European electricity networks. It will also assist Ukraine in aligning its legal framework and operational practices with the EU Third Energy Package,” reads an EBRD press release.
According to the bank, Ukrenergo will use the 15-year sovereign-guaranteed loan to acquire up to 26 new transformers and carry out the automation and upgrade of 12 high-voltage substations in key locations of the Ukrainian transmission network. The loan will also contribute to the annual reduction of CO2 emissions by 20,500 tonnes.
Besides, the investment will strengthen Ukrenergo’s capacity to accommodate the growing share of renewables in the Ukrainian grid, with an increasing share of wind and solar power. “A flexible, smart grid will be key to the sustainable electricity sector of the future,” said the report.
The EBRD financing is also promoting the commercialization and institutional development of Ukrenergo through the implementation of a comprehensive Corporate Governance Action Plan and robust procurement standards.
As reported, the total cost of Ukrenergo modernization project is EUR 198.2 million, including EUR 49.2 million of own funds of Ukrenergo and EUR 149 million to be provided by the EBRD.
The EBRD is the largest international financial investor in Ukraine. Since the start of its operations in the country in 1993, the Bank has made a cumulative commitment of almost €13.6 billion through 432 projects in the country.
PJSC Farmak pharmaceutical company (Kyiv) has raised a five-year loan from the European Bank for Reconstruction and Development (EBRD) in the amount of EUR 15 million (equivalent of UAH 427.838 million). An Interfax-Ukraine correspondent has reported that the loan agreement was signed between the bank and the pharmaceutical producer on Tuesday.
Farmak Executive Director Volodymyr Kostiuk said that the company has raised around EUR 72 million from the EBRD since 2006. “The EBRD is our strategic partner, we will continue working with it,” he said.
Kostiuk said that the attracted funds are intended to expand production at the Farmak’s facility in Kyiv.
“We want to develop and conquer new markets, but today we do not have enough production capacity, so the expansion of production is very important for us,” he said.
The borrowed funds will be sent, in particular, to finance the expansion of production facilities, and the construction of a new laboratory and production complex.
The European Bank for Reconstruction and Development (EBRD) will issue a $10 million loan to Sodrugestvo agro-industrial group, one of the world’s largest soybean processors. According to information on the bank’s website, the funds will be used to finance working capital for the group’s subsidiaries in Serbia and Ukraine.
In addition, the EBRD is organizing a $80 million loan to finance capital expenditures and working capital for a Sodrugestvo subsidiary in Turkey. It is expected that the EBRD will issue $55 million, and the rest of the loan ($25 million) will be syndicated. The cost of the entire project is estimated at $87.5 million. The funds will be used to partially finance the purchase of a production facility in Izmir (Turkey), upgrade the acquired object and finance working capital to expand activities in Turkey.
According to the bank, the financing will allow the company to expand the supplier base in Ukraine and Serbia and support the purchase of assets in Turkey.
Sodrugestvo Group was founded in 1994. It has headquarters in Luxembourg and over 30 enterprises in 20 countries. The company operates in the regions of Russia, the CIS, Scandinavia, Northern Europe, the Mediterranean region, the Middle East, Central and Latin America.
The European Bank for Reconstruction and Development (EBRD) will issue a loan of EUR 20 million (two tranches of EUR 10 million) to Dniprovska agribusiness group, one of the largest poultry producers in Ukraine, for the reconstruction and expansion of the slaughtering house. According to the bank’s website, the total cost of the project is EUR 33.8 million, of which EUR 23.8 million will be invested in 2019-2020, another EUR 10 million in 2020-2021.
According to the EBRD’s website, the project will enable the company to obtain necessary certification for entering the EU market.
As reported, in March 2018 the EBRD issued $5 million to Dniprovska group for the construction of a biogas plant. The total project cost was $5.85 million.
Dniprovska agribusiness group is engaged in poultry farming, plant growing, and processing industrial crops.
