17:56 20.12.2016

EIB providing EUR 71 mln to Nibulon to develop infrastructure in Ukraine

2 min read
EIB providing EUR 71 mln to Nibulon to develop infrastructure in Ukraine

The European Investment Bank (EIB) is providing a EUR 71 million loan to JV Nibulon LLC to develop and modernize logistic infrastructure in Ukraine, the company has said on its website.

Nibulon said that the funds would help the company to form a package of investment of $200 million. The money will be sent to finance the project on development and reconstruction of elevators, building transshipping and logistics terminals (building of tugboats) in Ukraine that would be implemented in coming two or three years.

The project is intended to create a stable, modern and wider grain storage and transportation system. The prices on domestic transportation would decrease and exports of agricultural products would grow, the company said.

Nibulon seeks to build up to 10 modern elevator complexes, including on the Dnipro and Southern Bug rivers. This would help to bring the total grain storage capacity of the company to 2.5 million tonnes.

The company intends to reconstruct the Nibulon shipyard. It would build up to 15 ships and processes up to 15,000 tonnes of metal a year.

Nibulon wants to increase the deadweight of its cargo fleet to 250,000 tonnes and boost river transportation by e Dnipro and Southern Bug rivers to 4 million tonnes. This would help to save UAH 3.16 billion of budget funds on repair of roads.

The agreement between the company and the EIB was signed on December 19 in Brussels as part of the meeting of the Ukraine-EU Association Council.

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