Ukrenergo to spend over EUR 400M to restore infrastructure

Ukrenergo to spend over EUR 400M to restore infrastructure

Ukraine's electricity transmission system operator Ukrenergo will spend more than 400 million euros on the purchase of the necessary equipment for the restoration and reconstruction of the country's energy infrastructure.

The company's press service said this in a post on Facebook, Ukrinform reports.

"Ukrenergo will soon be able to purchase part of the critically needed equipment for the restoration of the network infrastructure damaged by the Russians. This became possible thanks to the government's decision to provide a state guarantee for an EBRD loan of EUR 300 million, which will be supplemented by a grant from the government of the Netherlands," the post reads.

The company clarified that a guarantee agreement between Ukraine and the EBRD and a loan agreement between Ukrenergo and the EBRD would be signed in the near future. This will make it possible to allocate the necessary funds for the restoration of damaged equipment, as well as for financing operating costs and maintaining the company's financial stability.

Ukrenergo recalled that on December 9, the government also approved the provision of a state guarantee for a KfW loan of EUR 32.5 million to finance the reconstruction of eight substations in the southwestern region. Currently, the loan and guarantee agreements with KfW are being prepared for signing, which will give a start to this project. In addition, the Cabinet of Ministers of Ukraine approved a draft law on the ratification of changes to the Financial Agreement with the European Investment Bank, which will allow the continued use of the remainder of the loan to finance the reconstruction of a key substation in the central region (EUR 37.5 million).

"We are grateful to the Cabinet of Ministers for important decisions and to our European partners for firm support of the company in the extreme conditions of war and the trust shown by international financial institutions, providing access to extremely important financial resources for the emergency restoration of networks and smooth functioning of the power system," the company added.

Photo: Getty Images

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