Business news from Ukraine

EBRD to allocate EUR 372 mln to Ukrenergo for repairs of energy infrastructure

The European Bank for Reconstruction and Development (EBRD) has approved a financing package under which NPC Ukrenergo will be allocated EUR 372 million to support urgent repair of damage caused by Russian bombing of civil energy infrastructure.
According to the bank’s press release, the company will be provided with a state-guaranteed loan of EUR 300 million, as well as a grant of EUR 72 million from the Netherlands.
In particular, EUR 150 million is provided for the purchase of equipment for emergency recovery work, another EUR 150 million is provided for the support of the capital structure of the NPC. Separately, part of the emergency repair loan will be supplemented by a grant from the Netherlands.
“This will be blended into a single EUR 372 million package to support the immediate transmission infrastructure restoration needs of Ukrenergo,” the EBRD said.
The Bank says that EBRD investments in Ukraine are made with the support of donors and partners. The United States of America, which has contributed $500 million to the EBRD’s Crisis Response Fund and is strongly committed to addressing to the impact of the war on Ukraine, will support up to 50 per cent of the EBRD’s loan with a funded guarantee.
“Urgent repairs on Ukraine’s electricity network is an immediate priority for the EBRD. The Ukrainian people and businesses need continued access to electricity to go through the winter. With this important financing, we will help Ukrenergo perform swift emergency repairs of damaged equipment, high voltage substations and transmission lines. It will ensure the continued provision of vital power transmission services during the heating season for Ukrainian households, businesses and communities,” said EBRD President Odile Renaud-Basso.
“The EBRD condemns in the strongest possible way the unprovoked and unjustified Russia-led war on Ukraine and especially the strikes on civilian infrastructure,” the message reads.

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JSC Ukrzaliznytsia in January-November 2020 updated 11,903 freight cars, most of all high-sided cars were repaired – 5,953 units.
According to the press service of the company, 773 platforms, 479 covered wagons, 563 tanks, 1,066 grain carriers, 411 cement carriers, 468 hopper dispensers were also repaired during this period.
As reported, Ukrzaliznytsia in 2021 plans to allocate 3 times more funds compared to 2020 for renovation, overhaul, modernization of rolling stock and infrastructure construction.

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The State Automobile Roads Agency of Ukraine (Ukravtodor) has begun repair work on the ten-kilometer section of the T-16-07 Izmail-Kiliya-Vilkove national road.
Ukravtodor said in its Telegram channel that work is already underway to break up the old road surface and equip the base with crushed stone-sand mixture.
The contractor for the repair work on the site is Rostdorstroy LLC.
Ukravtodor said that under the Big Construction program it is planned to restore 194 km of roads in Odesa region in 2020.
RDS Group is included in the top three road construction companies of Ukraine. It includes Kyivshliakhbud” and Rostdorstroy.
The core business is construction, reconstruction and maintenance of roads and bridges, construction of airfield complexes.
The ultimate beneficial owners of RDS Group are Ukrainian citizens Yuriy Shumakher and Yevhen Konovalov.

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As of Tuesday, June 23, road construction is carried out on 3,000 kilometers of Ukrainian roads, namely, some 224 objects in 23 regions of Ukraine.
The State Automobile Roads Agency of Ukraine (Ukravtodor) said on its Telegram channel on Tuesday that more than 500 kilometers of roads are currently being commissioned.
Ukravtodor said that in 2020, under the Big Construction project, it is planned to repair 4,200 kilometers of public roads. The total budget is UAH 90.2 billion.
“Currently, construction works are being carried out on 2,816 kilometers of roads through financing from the Road Fund, the national budget and loans. Construction works on 189 kilometers are being continued at the expense of international financial institutions. In addition, tender procedures have been announced for repairing 1,413 kilometers of roads, we are awaiting the conclusion of the main number of contracts in the coming weeks,” the agency said.

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The State Agency of Automobile Roads of Ukraine (Ukravtodor) has begun road repair and construction work at 118 sites in 18 regions, Head of Ukravtodor Oleksandr Kubrakov said on his Facebook page.
He noted that 100 objects are funded by the State Road Fund and 18 in the framework of cooperation between Ukravtodor and international financial organizations.
“Mostly preparatory work is being done at this stage, but, for example, asphalt is already laid on roads H-30 and H-09,” he added.
Other facilities, he said, are still at the public procurement stage. In 2020, some 289 tenders were announced, the total expected cost is UAH 28 billion.

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Acting Head of the State Agency of Automobile Roads of Ukraine (Ukravtodor) Slawomir Nowak has said hopefully Zaporizhia-Mariupol highway will be repaired by the end of 2019.
“We have a very ambitious goal: to complete Zaporizhia-Mariupol corridor this year. Large-scale funding was provided to complete these works, because this corridor is very important for the whole country. This is ‘the road of life’ for Zaporizhia and Donetsk regions, for Mariupol as well, thus we want to work so fast to be able to complete the construction,” Novak told the journalists during a visiting meeting.
He said the works are carried under constant supervision of the agency.
According to the Ukravtodor, the total length of the site is 209 km (41.3 in Donetsk region and 167.6 km in Zaporizhia region). Meanwhile, 54.1 km of roads have already been repaired (10.1 in Donetsk region and 44 km in Zaporizhia region).
Inter alia, the highway workers plan to repair 80.4 km of road in Zaporizhia region worth UAH 1.567 billion, and 31.2 km of road in Donetsk region worth UAH 840.6 million.
As reported, the Cabinet of Ministers of Ukraine has addressed a balance of funds of the Ukravtodor in an amount of UAH 1.920 billion and unappropriated expenditures of 2019 in an amount of UAH 94.142 million for the development of the principal highways.
The government passed a respective decision at its meeting on Wednesday.
According to an explanatory note to the document, over UAH 1.240 billion will be allocated for continuation of the permanent medium repairs of Boryspil-Dnipro-Zaporizhia-Mariupol highway enroute Zaporizhia-Mariupol, extra UAH 400 million will be spent for Dnipro-Mykolaiv highway (Dnipropetrovsk region) repairs in 2019.

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