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World Bank to grant $200 million to Ukrainian power projects

The World Bank (WB) will issue a $200 million loan to Ukraine to rehabilitate its power system, a spokesman for the country's Finance Ministry said Friday.

The source said the funds would sponsor the Electricity Transmission project, aimed at improving the safety of electricity supplies by rehabilitating transmitting stations and renewing national transmission networks. The Ukrainian Fuel and Energy Ministry has been appointed executive in charge of the project, to be implemented by the Ukrenergo National Energy Company. Relevant negotiations were held in Kiev in June. As a result, “a decision was made to grant the loan under WB standard conditions with a five-year grace period,” the source said.

A loan agreement and an agreement on the project's implementation are expected to be signed later this year. The project has been estimated at $238 million, including the WB loan of $200 million and Ukrenergo's contribution of $38 million. Established in 1998, Ukrenergo includes eight electricity systems that have 32 subordinate units to handle regional and transnational power transmission networks. (rian.ru)