EBRD to provide Ukrhydroenergo EUR 75 mln, expects additional EUR 20 mln in investment grants
The European Bank for Reconstruction and Development (EBRD) is preparing to extend a long-term, senior loan of up to EUR 75 million to PJSC Ukrhydroenergo to finance the purchase of critical equipment for the Dnipro Hydropower Plant (HPP) and several of the company's other facilities.
According to a statement published on the EBRD's website, the project has passed its final review and now awaits approval.
The EBRD also expects the loan to be complemented by up to EUR 20 million in investment grants from international donors, pending availability.
"The Project is expected to benefit from a partial EU guarantee under its Ukraine Investment Framework," the statement reads.
The project description notes that the loan and grants will finance the procurement of hydropower equipment (a turbine and generator) for the Dnipro HPP, which was damaged as a result of Russia's military aggression. They will also support the purchase of hydromechanical equipment (superstructure covers) for the Kyiv HPP–PSPP Cascade and Kaniv HPP branches, which has suffered significant physical wear and moral obsolescence over years of operation, has undergone repeated repairs, and no longer meets modern HPP equipment requirements.
As reported earlier, at the Ukraine Recovery Conference (URC2025) held in Rome in July, the European Investment Bank (EIB) Group and the European Commission announced a new EU financing package of EUR 600 million. It includes funding for critical energy and transport infrastructure, as well as support for the recovery of Ukrainian SMEs and the private sector. Most of the financing is provided in the form of EIB loans backed by EU guarantees. For Ukrhydroenergo specifically, the package envisaged an EIB loan of EUR 120 million for the reconstruction of three strategic hydropower plants – Kaniv, Kremenchuk, and Dnipro – as well as urgent needs at other facilities.