Ukrainian President Petro Poroshenko has proposed that the Ukrainian parliament ratifies changes to the financial agreement with the European Investment Bank (EIB) on the prolongation of the term of use of funds to realize the project on the construction of the 750 kV Rivne nuclear power plant (NPP) - Kyivska substation power line until June 30, 2015.
According to draft law No. 0102 registered in the parliament on Oct. 6, the letter on amendments to the agreement that is to be ratified was signed by the sides on Jan. 9, 2014 in Luxemburg and on July 9, 2014 in Kyiv.
Due to the postponement of the deadline for the use of EIB’s funds in the amount of 150 million euro from Dec. 31, 2012 to June 30, 2015 the Libor spread for euros is increased from 0.55 percent per annum to 0.787 percent per annum.
The rest of the conditions of providing the credit by the EIB remain unchanged: the balloon payment for the opening of the credit line is 0.25 percent, the commission fee is 0.1 percent and the fee for the issue of the credit to the Ukrainian government (Finance Ministry) – 2 percent.
The funds raised are repaid by the executor of the project in the person of national energy company Ukrenergo, in the tariff for electricity transmission of which the funds for servicing and repaying of the credit are foreseen.
The total cost of the project is Hr 4.847 billion, 300 million euro of which are loans raised by Ukrenergo from the European Bank for Reconstruction and Development and the European Investment Bank.
The total length of the transmission line will be 353 km. Its construction is to be completed by the end of 2014.
Ukrenergo operates Ukraine’s backbone and interstate power grids, as well as supervising the country’s national grid. It is a state-owned company and is controlled by the Ukrainian Energy and Coal Industry Ministry.
