OREANDA-NEWS. May 31, 2011. JSC Ukreximbank obtained final approval of the USD 200 million facility under the Energy Efficiency Project (EEP) in Ukraine from the World Bank (WB), reported the press-centre of Ukreximbank.

Positive decision of the WB Board of Executive Directors followed the talks held by the Ukrainian delegation and the resolution of Ukrainian Government on expediency of the loan. The WB final approval of the EEP enabled signing of the respective agreements with their further ratification by the Ukrainian Parliament.

Ukreximbank continued successful track record in implementing the WB Export Development Project (19997-2004), the Second Export Development Project (2006-present day) as well as the EBRD Energy Efficiency Programme (2007-present day) stipulated for Ukreximbank fair appointment as the direct borrower of the Project funds, bearing all credit risks and responsibility for Project implementation. The state-guaranteed loan is provided for up to 30 years to facilitate reduction of energy consumption by Ukrainian enterprises in view of increasing import prices for energy carriers and 3x excess of Ukraine’s GDP energy intensity over the EU’s.

Ukreximbank will provide medium and long-term investment project financing for the Ukrainian corporates, including loans through other commercial banks, as well as financing of energy saving projects in municipal sector. Borrowers and commercial banks are to be chosen under the criteria defined jointly with the WB, which include commitment to reduce energy consumption and financial stability indicators.

Mr. Mykola Udovychenko, Chairman of the Board of JSC Ukreximbank, distinguished the EEP thorough preparatory work conducted jointly with the Government authorities, and emphasized on Ukreximbank focus on supporting Ukraine exports and real sector energy efficiency within the framework of cooperation with IFIs. Such cooperation strengthens competitiveness of the Ukrainian enterprises and helps to attract foreign currency from abroad to cover its outflow for imported energy carriers. This in its turn should improve the balance of payments of Ukraine.

As Mr. Martin Raiser, the World Bank’s Country Director for Ukraine, Belarus and Moldova, outlined, "the potential for energy efficiency in Ukraine is enormous. To make much needed long-term finance for energy efficiency investments in the industrial and municipal sectors available, the World Bank is supporting a market-based approach through the approved credit line to Ukreximbank which is also available to other participating banks. Ukreximbank has a successful track record of implementing World Bank projects. This project is an expression of the ongoing strong collaboration between the two institutions and the World Bank hopes for a timely implementation."