OREANDA-NEWS. May 03, 2011. The Ukrainian delegation headed by Ukreximbank Chairman of the Board Mykola M. Udovychenko held successful talks on provision by the World Bank of the Loan in the amount of USD 200 mln for Energy Efficiency Project, reported the press-centre of Ukreximbank.

Joint Stock Company The State Export-Import Bank of Ukraine prepares jointly with the World Bank the Energy Efficiency Project. The Project is intended to finance activity related to improving the efficient energy consumption by the Ukrainian enterprises and decreasing the share of traditional energy sources in the structure of real sector expenditures.

The Project will be financed by the International Bank for Reconstruction and Development (IBRD) – the major lending institution of the World Bank. On March 23, the Cabinet of Ministers of Ukraine resolved on expediency of attracting loan from the IBRD in the amount of USD 200 mln. The Loan aimed at Project implementation is provided for the period up to 30 years under the terms and conditions that are standard for other projects implemented in Ukraine by the World Bank. The funds will be extended against the sovereign guarantee of the Government of Ukraine. The terms and conditions of the Loan stipulate the possibility of retroactive financing of the energy saving projects being under implementation.

JSC Ukreximbank is a borrower of funds and at the same time is responsible for the Project implementation and bears all credit risks. Ukreximbank will provide medium and long-term financing for enterprises’ production demands: investment projects and working capital financing, in particular; as well as financing of energy saving projects in municipal sector. Financing will be provided through qualified commercial participant banks. Ukreximbank has a positive experience in similar programs implemented jointly with another international financial institution, namely the European Bank for Reconstruction and Development.

On April 12, the Ukrainian delegation headed by Mr. Mykola Udovychenko, Chairman of the Board of JCS Ukreximbank held successful official negotiations with the World Bank as to the conclusion of agreements governing the extension of the loan. Upon the final approval of the Energy Efficiency Project by the Board of the World Bank, which is expected in May 2011, the respective contractual documents will be signed by the parties.

In his comments regarding negotiations with the World Bank, Chairman of the Board Udovychenko emphasized on the importance of cooperation with the World Bank and pointed out that the financing of energy efficiency projects is one of the priority areas of Ukreximbank activity.

In accordance with the expert appraisal of investments already made in energy efficiency in Ukraine, the Project implementation may provide reduction of energy carriers’ consumption approximately over equivalent of 6 kWh per year from each dollar of investments. Experts of the World Bank estimate that the reduction of hazardous greenhouse gases emissions may amount to 1 million tones in carbon dioxide equivalent.