OREANDA-NEWS. June 18, 2010. The EBRD is lending USD50 million to Nibulon Ltd., a leading grain exporter and producer registered in Ukraine. The transaction will play an important role in the development of the adequate and functional storage and shipment infrastructure along the Dnieper River, which is currently not used for active cargo transportation, reported the press-centre of EBRD.

Using the proceeds of the loan Nibulon plans to construct five in-land and river silos with a total storage capacity of around 300,000 tonnes of grain as well as river terminals in Poltava and Zaporizhzhia regions of central Ukraine. The Bank’s financing will also help Nibulon build its own fleet of twelve self-propelled river-sea barges, six tugboats and a ship crane.

Upon its successful completion, the project is expected to lead to higher efficiency of grain transportation as well as to provide a cheaper alternative option to truck and railway logistics.

Gilles Mettetal, EBRD Director for Agribusiness, said: “As a result of this project Nibulon will increase grain collection volumes and improve access to reliable grain storage for farmers in the area”. It will lead to improvements in farming efficiency thus demonstrating the best technologies to the farmers and will ensure better prices as a result of providing adequate drying, quality grading and storage, he said.

In the agribusiness sector alone, the EBRD has directly committed more than EUR5.5 billion in over 380 projects across central and eastern Europe and the Commonwealth of Independent States since 1991.

The European Bank for Reconstruction and Development is the largest financial investor in Ukraine. As of 1 May 2010, it had committed over EUR5.0 billion through 197 projects.