22 Mar 2024

EIB President Welcomes Ukrainian Prime Minister, Endorses Hydropower Investment

22 Mar 2024  by waterpowermagazine   
In a significant move aimed at bolstering Ukraine's energy security, the European Investment Bank (EIB) has pledged its support to Ukrhydroenergo, Ukraine's primary supplier of renewable energy, through the signing of a Memorandum of Understanding (MoU). The agreement, inked during a high-profile visit by Ukrainian Prime Minister Denys Shmyhal to the EIB headquarters, underscores a joint commitment to accelerate support and strengthen cooperation in key sectors critical for the country's recovery and reconstruction efforts.

The meeting between EIB President Nadia Calviño and Prime Minister Shmyhal was marked by discussions on ongoing projects and the pressing need to revitalize Ukraine's hydropower infrastructure, which has suffered significant setbacks due to the conflict, including the destruction of the Kakhovka dam.

Since Russia's full-scale invasion of Ukraine, the EIB has already provided €2 billion for emergency infrastructure repairs, emphasizing its unwavering support for the nation amidst adversity.

Aligned with Ukraine's investment priorities and guided by collaborative frameworks such as the Ukraine Plan and the European Union's Ukraine Facility, the memorandum signifies a pivotal partnership between the EIB and Ukraine in national infrastructure projects focused on recovery and reconstruction. Notably, the MoU highlights a proposed €100 million loan earmarked for the rehabilitation and maintenance of Ukraine's hydropower generation, subject to final approval from the EIB.

The signing ceremony, attended by EIB Vice-President Teresa Czerwinska and General Director of Ukrhydroenergo Ihor Syrota, signals a crucial step towards fortifying Ukraine's energy security and advancing sustainable development in the hydropower sector.

Prime Minister Shmyhal expressed gratitude for the EIB's steadfast support, acknowledging the critical role it plays in restoring Ukraine's energy infrastructure amidst challenges posed by external threats. Similarly, Ihor Syrota lauded the EIB as a reliable partner, emphasizing the memorandum's significance in ensuring the nation's energy security and fostering the sustainable growth of the hydropower industry.

We remain steadfast in our support for Ukraine,” said EIB President Nadia Calviño. “The European Union’s €50 billion Ukraine Facility incorporates a significant role for the EIB, and our teams are dedicated to deploying all necessary resources to accelerate support and strengthen cooperation in key sectors critical to the country. I reaffirmed to Prime Minister Denys Shmyhal our commitment to work together on projects, from key energy infrastructure to the rebuilding of homes and hospitals, alongside our EU partners and fellow International Financial Institutions, further supporting Ukraine’s path towards EU membership.”

EIB Vice-President Teresa Czerwinska, in charge of the Bank’s operations in Ukraine, added: “By focusing on critical infrastructure projects, particularly in the energy sector, we aim not just to meet immediate recovery needs but also to lay a strong foundation for Ukraine’s sustainable development. We stand ready to support Ukraine’s main hydropower generation company, Ukrhydrenergo, to strengthen Ukraine’s energy security at a time of repeated attacks on civil power infrastructure by Russia.”

Energy remains a top priority for the EIB in Ukraine, alongside critical infrastructure, the transport sector, social infrastructure, and private sector support.


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