Kyivenergo in talks for USD 230 mln loan from World Bank
7 July 2008
Kyivenergo (KIEN: HOLD) announced on Friday it is in talks with the World Bank to receive a USD 230 mln loan for modernization of the city of Kyiv’s electricity network. According to Kyivenergo, network modernization will require USD 239 mln by 2012. Kyivenergo received preliminary consent from the World Bank and Ministry of Fuel and Energy of Ukraine. Alexander Paraschiy: Kyivenergo has experience in cooperating with the World Bank: in October 2007 it finished a USD 200 mln reconstruction project of the city’s heating network, for which it took a USD 160 mln World Bank loan. We believe it is realistic for Kyivenergo to get the new loan, while we are not sure that the WB will give USD 230 mln for a USD 239 mln project. Usually WB finances only equipment purchases, while installation needs to be financed by the company itself.
