Brussels, 16/09/2011 (Agence Europe) - On Friday 16 September, the European Investment Bank (EIB) announced a €175 million loan to Ukraine to reinforce the electrical connections between the country's eastern and southern regions. EIB Vice-President Anton Rop stated: “This project will contribute to the better utilisation of Ukraine's electricity generation capacity, reduce electricity transmission losses and improve the security of the electricity supply”.
The project, which is being co-financed by the European Bank for Reconstruction and Development (EBRD) with a loan of €175 million, will also help Ukraine to harmonise its electricity network with the European electricity transmission system in the medium term. It will serve to optimise the use of existing electricity generation capacity, resulting in a reduction of generation from inefficient coal and gas-fired power plants with positive consequences in terms of decreased CO2 emissions and increased network reliability. The project will receive a contribution under the Neighbourhood Investment Facility to support its implementation.
The EIB loan will co-finance the construction of: - a new 190 km 750 kV overhead line running between Zaporizhzhia and Kakhovska in southern Ukraine, - a new 750kV substation at Kakhovska; - 330 kV diversions of two existing overhead lines from Novokakhovska to Ostrovska and from Novokakhovska to Kherson to the new 750 kV Kakhovska substation, - auxiliary facilities such as housing and a repair and maintenance area; - and rehabilitation works at the existing 330kV Novokakhovska, Kherson and Ostrovska substations.
Ukraine's National Power Company Ukrenergo is the project promoter and the final beneficiary of this EIB loan. This is Ukrenergo's second transmission project supported by the EIB. (OL/transl.jl)