Business news from Ukraine

RADA RATIFIES AGREEMENT WITH FRANCE ON PROVISION OF EUR 64 MLN LOAN FOR DRINKING WATER PROJECT IN MARIUPOL

The Verkhovna Rada has ratified an agreement between the governments of Ukraine and France regarding the official support of a project on supply of drinking water to the city of Mariupol (Donetsk region). An Interfax-Ukraine correspondent has reported that a total of 258 lawmakers backed the agreement. According to the Framework Agreement, the French side provides Ukraine with a loan in an amount not exceeding EUR 64 million for the project on supply of drinking water to Mariupol.
The agreement also provides for the development of a master plan for improving the water supply and drainage system of Mariupol until 2040.
According to an explanatory note to the bill on ratification, the project will include the construction and launch of modern filtering stations in Mariupol, as well as the modernization of the existing centralized water supply pipelines and drainage system to reduce the consumption of drinking water and discharge of sewage into the environment.

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KYIV MAYOR VITALI KLITSCHKO PRESENTS PROJECT OF PEDESTRIAN AND CYCLE BRIDGE

Kyiv Mayor Vitali Klitschko has presented a construction project for a big tourist route in Kyiv downtown, including a pedestrian and cycle bridge across Volodymyrska Hill, at UNESCO Headquarters in Paris, according to mayor’s press service.
“Preservation of precious world heritage facilities is of major importance for us. This was our main principle during project development. The bridge will create comfortable conditions for Kyiv residents and tourists to visit landmarks of global impact,” Klitschko said.
He added that an advisory mission from UNESCO would visit Kyiv in the latter half of April.
The media earlier reported that the UNESCO World Heritage Committee demanded to suspend the construction of the bridge. However, no relevant document was made public.

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FRANCE TO FINANCE JOINT PROJECT OF UKRENERGO AND RTE FOR BUILDING PILOT ENERGY STORAGE

The Ministry of Economy and Finance of France has allocated a grant of EUR 560,000 to Ukraine to finance a joint project of Ukrenergo and RTE International for the implementation of Ukraine’s first energy storage system, the press service of the Ukrainian company has reported. According to its data, in the next six months, RTE International plans to implement the first phase of the project: a feasibility study and technical assignments for further work. At the second stage, the possible cost will be determined, a model of the future storage system and a roadmap will be created with a list of all necessary measures for the implementation of the joint project.
Ukrenergo notes that the project is of a great importance for the future development of the Ukrainian energy sector and the integration of the domestic energy system into the energy system of continental Europe, since one of the requirements is to ensure the required amount of primary frequency control.
In addition, over the past few years, there has been an increase in wind and solar power generation in Ukraine, which will require the construction of additional highly maneuverable capacities that meet the environmental requirements of European countries.
“The start of cooperation with RTE, the leading player in the European market, the implementation of a complicated and innovative energy storage project is a significant step towards our European integration and the strengthening of Ukraine’s energy security,” Ukrenergo Head Vsevolod Kovalchuk said.

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UKRAINE PLANS TO BUYS 227 BUSES, 153 TROLLEYBUSES UNDER EIB PROJECT IN 2019

Ukraine under the Ukraine Urban Public Transport Project of the European Investment Bank (EIB) plans to buy 227 buses, 153 trolleybuses, 56 trams and 35 subway wagons in 2019, according to a posting on the website of the Infrastructure Ministry.
“The Infrastructure Ministry together with the Finance Ministry and local governments (11 cities) are implementing the EIB project, which main goals are to implement subprojects in the cities of Ukraine to develop environmentally friendly and socially significant transport,” the ministry said.
The project provides for the renewal of the fleet of buses, trolleybuses, trams, metro cars, construction and reconstruction of tram and trolleybus lines, funicular, replacement of traction substations, introduction of modern fare collection systems and information systems using borrowed funds from the EIB and EBRD.
According to the Infrastructure Ministry, in particular, in 2018, under the project 167 trolleybuses were purchased, including 47 units for Odesa, 40 units for Kremenchuk, 23 trolleybuses delivered to Dnipro, 10 to Kremenchuk, and eight – to Kryvy Rih.
Thanks to these purchases, taking into account the trolleybus fleet in these cities as of January 1, 2018, Odesa has now updated its fleet by 28%, Kremenchuk – by 70%, Dnipro – by 17%, Rivne and Kryvy Rih – by 10% each.
As reported, in April 2017, Ukraine’s Verkhovna Rada passed a bill ratifying the financial agreement between Ukraine and the EIB under the Ukraine Urban Public Transport Project.
The approximate total cost of the project is EUR 400 million.

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NORWEGIAN-BASED SCATEC SOLAR REACHES FINANCIAL CLOSE FOR 30 MW PROJECT IN UKRAINE

Norwegian-based Scatec Solar and partners have closed financing for the 30 MW Kamianka project in Cherkasy region in central Ukraine with a total investment of EUR 35 million, the company’s press service said. The European Bank for Reconstruction and Development (EBRD) and FMO, the Dutch development bank have signed credit agreements for the non-recourse debt financing of the project. The credit facilities amount to EUR 24.5 million and cover 70% of the total project costs.
Scatec Solar says it is in the process of securing additional equity partners for the project.
Scatec Solar will be the lead equity investor in the project; it will also be the Engineering, Procurement and Construction (EPC) provider and provide Operation & Maintenance as well as Asset Management services to the power plant. Construction is starting early 2019 with commercial operation in the fourth quarter 2019.
The company says the project will be implemented under the country’s 10-year feed-in-tariff scheme and is expected to produce about 39 GWh per year. Public land will be leased for an extended time period and the solar power plant is expected to deliver power also beyond the feed-in-tariff period.
Scatec Solar is an integrated independent solar power producer, delivering rapidly deployable and sustainable clean energy worldwide. Scatec Solar develops, builds, owns, operates and maintains solar power plants and has an installation track record of more than 1 GW. The company has a total of 1.5 GW in operation and under construction in Argentina, Brazil, the Czech Republic, Egypt, Honduras, Jordan, Malaysia, Mozambique, Rwanda, South Africa, and Ukraine.
As reported, Ukraine’s parliament on November 20, 2018, passed draft law No. 8449-d in the first reading to introduce “green” auctions from 2020. The legislative initiative envisages, among other things, a reduction in the feed-in tariff for solar power plants by 25% in 2020, to be followed by a 2.5% decrease each year.

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WB TO LAUNCH $753 MLN AGRI INVESTMENT ACCELERATION PROJECT IN UKRAINE IN 2019

The World Bank by February 2019 plans to launch the project entitled “Accelerating Private Investment in Agriculture Program,” the press service of the Agricultural Policy and Food Ministry of Ukraine has reported. “The project will be implemented in many sectors by the Agricultural Policy and Food Ministry, Infrastructure Ministry, Ecology and Natural Resources Ministry, Economic Development and Trade Ministry. The approximate cost of the project is $753 million, including the World Bank’s commitment of $200 million,” the ministry said.
According to the ministry, the project is aimed at harmonizing Ukrainian legislation in accordance with EU requirements, improving the government agricultural support system, diversifying the production of the agricultural sector, developing rural areas, strengthening the capacity for food safety, solving logistical issues, improving land use quality, and improving management of water resources, improving access to agricultural resources, improving access to financial resources and risk management tools.
The project coordinator is the Finance Ministry, which will receive a previously agreed loan amount and distribute it among the implementing ministries.

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