The Ukrainian parliament has ratified a credit agreement signed between Ukraine and the European Bank for Reconstruction and Development (EBRD) regarding a project on the renovation of hydroelectric power plants under the management of public joint-stock company Ukrhydroenergo.
A total of 271 out of 347 lawmakers registered in the session hall on Tuesday supported the law.
The agreement foresees the provision of a EUR 200 million loan to upgrade hydromechanical and electromechanical equipment at the power plants of Ukrhydroenergo.
Earlier the press service of the Energy and Coal Industry Ministry reported that Ukraine and the European Investment Bank (EIB) had initialed a loan agreement worth EUR 200 million as part of a project for the renovation of the hydropower plants of Ukrhydroenergo.
The total cost of the project for the renovation of Ukrhydroenergo's hydropower plants is EUR 690 million. It is planned that EUR 400 million will be provided by the European Bank for Reconstruction and Development and the European Investment Bank on an equal basis, while the remainder will be financed by Ukrhydroenergo.
A respective loan agreement was signed by Ukraine and EBRD on September 29, 2011.
After the realization of the project, the capacity of Ukrhydroenergo's power plants will expand by 100 megawatts. The efficiency and safety of their operation will be increased.
Ukrhydroenergo operates all of the major hydroelectric power plants on the Ukrainian sections of the Dnipro and Dniester rivers. Their total electricity generating capacity comes to five gigawatts. State-owned Energy Company Ukraine owns 100% of the shares of the company.
