The European Bank for Reconstruction and Development (EBRD) on December 13, 2017 is to consider the provision of a loan of $40 million to Nibulon JV LLC, the EBRD has said in a press release.

"The loan is to support the expansion and modernization of Nibulon's grain logistics infrastructure in 2018-19, including the construction of river terminals, transhipment crane, river fleet and Mykolaiv terminal enhancement," the bank said.

The project will support Nibulon's strategy aimed mainly at the expansion and optimisation of its river grain logistics facilities in order to increase grain trading volumes reducing the share of road and rail transportation, which will lead to the improvement of profitability, efficiency, as well as to the reduction of environmental footprint.

Nibulon has all the required environmental, health and safety (EHS) permits for its current operational activities and is undertaking all necessary studies for obtaining required permits and licences as part of the design process for the project.

The EBRD said that the bank could increase the loan to $50 million. The total cost of the project is near $140 million.

Nibulon LLC was established in 1991. It is one of the largest operators in the grain market of the country. It has elevators with a total capacity of about 2 million tonnes, as well as its own transshipment terminal with a capacity of 5 million tonnes in Mykolaiv.

Nibulon cultivates 82,000 hectares of land, owns and operates the second largest network of internal elevators and river terminals, a sea terminal in Mykolaiv. The company exports mainly maize, wheat and barley to more than 20 countries. The annual volume of exports reaches 4.5 million tonnes.