real sector of the Ukrainian economy will receive additional financial support
from the EBRD for the funding of state-owned and municipal companies. The
funding was approved by the Directors’ Board of the EBRD in London on October
14. Deputy finance minister of Ukraine Artem Shevalyov, who is in charge for European integration,
participated in the meeting of the Directors’ Board.
Ministry of Finance is actively working to create a basis for the fast economic
growth of Ukraine. With this purpose the Ministry is attracting long-term loans
under preferential terms from the official bi- and multilateral partners of
Ukraine for the development of the real sector of the economy. Preferential
loans used for financing the infrastructure development are contributing to the
improvement of companies’ efficiency, helping create new working places and
boosting the competitiveness of the entire country. Investments in
infrastructure and improvement of the public and municipal services foster the
development of other sectors of the economy.
the Directors’ Board of the EBRD has decided to support the following projects:
program for the public transport in Ukraine (volume: EUR 100m).
the program public transport companies in Ukraine will be able to receive loans
from the EBRD to be used to improve the public transport infrastructure, first
of all – for the purchase of new vehicles. The re-payment of the loans shall be
guaranteed by local administrations, which has become possible due to the
fiscal decentralization completed by the Government of Ukraine, increased
financial independence and powers of the regions.
shall grant loans under the following terms:
towns and cities should adopt new regulations on
contests for the allotment of lanes aimed to reduce discrimination in the
competition between state-owned and private operators;
tariff reforms in every town aimed to improve the
financial situation of the providers with fare revenues;
improvement of standards for the release of data on
the financial and operational results of companies;
improvement of financial management, organizational
and cost-cutting effectiveness of companies receiving the loans etc.
first company to receive the loan under this program is the municipal
enterprise «Odesmiskelectrotrans» in Odessa. The loan
amounting up to EUR 8m shall be guaranteed by the city administration. The loan
is granted for up to 12 years including a two-year grace period and shall be
re-paid in 20 equal parts every six months. The loan has a volatile interest
rate equal to Euro LIBOR + 400 to 700 basic points.
loan shall be used for the purchase of up to 45 new trolley-buses and necessary
maintenance equipment. The purchase will be effected
in accordance with the bidding standards and under participation of the EBRD.
implementation of the program for the development of the public transport in
Odessa will enable the local administration to expand the environmentally safe
public transport fleet, to increase the volume of public transport services and
to improve their quality.
projects are now being considered in Chernigiv, Chernivtsi, Sumy, Ivano-Frankivsk,
Mykolaiv, Lviv, Kremenchuk, Zhytomyr and Lutsk.
Individual loan agreements with these cities can be signed in the course of
2016 and 2017.
Modernization project for the state-owned joint stock company «Ukrgidroenergo».
This project is a part of a bigger program for the
modernization of all generating capacities of «Ukrgidroenergo»
with the total power of 4600 MW at ten electricity plants most of which were
put into operation back in the 1960s. The modernization program was launched in
1996 and is planned to be completed before 2022. Today’s decision of the EBRD
is changing the terms of the project amounting EUR 180m and prolonging the loan
maturity date which will improve the mid-term debt profile of the company.