WB Loans USD 106 Mln To Fuel And Energy Ministry.

Yesterday Acting Fuel and Energy Minister Ivan Plackov signed a loan agreement with World Bank representative Paul Bermingham. The amount of the loan is USD 106 mln, and the repayment deadline is 18.5 years, including a 6-year grace period; the interest rate is LIBOR+0.75% (about 4.5% currently). The loan will be used to implement a development program (the cost of which is USD 361.8 mln) for the Ukrainian power sector. The project will focus on hydro power stations and Ukrhydroenergo (a company operating large hydro power plants), and the institutional development of the Fuel and Energy Ministry in connection with the wholesale electricity market. The project is scheduled to last 6 years. Concorde Capital: The most important part of this project for the whole energy sector is the development of new rules for the wholesale electricity market. This will lead to the creation of necessary conditions for the transition from the one buyer system in the wholesale electricity market to direct contracts.