EIB to provide Ukrhydroenergo with EUR120 mln loan for HPP modernization – agreement at URC2025
The European Investment Bank (EIB) will provide Ukrhydroenergo with the first tranche of a loan in the amount of EUR120 million out of the planned EUR200 million for the targeted restoration and modernization of Ukrainian hydroelectric power plants.
As the hydropower generating company reported on Friday, the relevant agreement on the first tranche was signed on July 10 in Rome on the sidelines of the URC2025 Ukraine Recovery Conference.
It is noted that the total amount of the loan will be EUR200 million, the loan will be provided under two or more financial agreements.
"Part of the funds are planned to be used to restore the company's three hydroelectric power plants that were damaged as a result of Russian terrorist attacks. The rest is for urgent emergency work in case of possible new damage to other Ukrhydroenergo facilities," the company explained.
It is expected that receiving this tranche will be a powerful impetus for Ukrhydroenergo to continue its work to restore lost capacity and strengthen the resilience of hydropower facilities in the face of ongoing military aggression.
"The loan was made possible thanks to a financial guarantee from the European Commission under the new Ukraine Facility program. This flagship EU program with a budget of EUR50 billion (for 2024-2027) is designed to provide sustainable support for the recovery, reconstruction and modernization of Ukraine," the company added.
In particular, the guarantee agreement with the EU allowed the EIB to commit to investing significant funds in the Ukrainian energy sector and other critical projects, despite military risks. The loan for Ukrhydroenergo was one of the first projects under the Ukraine Facility, and its successful implementation sets an important precedent.