OREANDA-NEWS. October 11, 2012. As a result of cooperation with the European Bank for Reconstruction and Development under energy efficiency program UKEEP "MEGABANK" financed 14 credit agreements for total amount of USD 12.1 mln. "MEGABANK" became the participant of UKEEP program in November 2011 when it signed agreement for USD 13.5 mln., reported the press-centre of MEGABANK.

The process of crediting enterprises which implement energy efficiency technologies was discussed during the visit of EBRD Board of Directors to "MEGABANK".

Within the program companies are provided with not more than USD 2.5 mln. credits to 5 years. As at the 1 July "MEGABANK" gave 58% of the amount to agricultural companies, 38% to energy sector and 5% to industry.

According to Alexander Laschenko the First Deputy Chairman of "MEGABANK" investments to agricultural sector are aimed at purchasing modern machinery, which helps improve operational efficiency and decrease fuel consumption and save money correspondently. The average decrease of fuel consumption is 18-30%. 60% of tractors of Ukrainian agro-industrial complex have been in operation for 30 years, 28% – for 15-20 years. Fleet replacement is urgent for agrarians. Thanks to this factor the work is not only more ecological but much more profitable too.

The agricultural enterprise "Alyonka" in Lugansk region is among companies of agrarian sector which were provided with credit within the program. Thanks to USD 126,500 investment the enterprise has replaced its machinery and decreased fuel consumptions by 47%.

Enterprise in Kharkiv region "PJSC Balakliyske Bread Company" was provided with USD 981,800 investment. The company which grows grain and industrial crops on approximately 5 800 hectares of land invested in modern agricultural machinery with financing help from UKEEP. Now it is aimed to decrease fuel consumption.

LLC "Bilshovyk" (Kharkiv region) was provided with USD 238,000 investment. It is going to replace old machinery and save approximately USD 64,000 a year by reducing fuel consumptions.

"LLC Khliborob" (Kharkiv region) was provided with USD 655,000 investment. It is going to buy harvester combine and new sprinkler and reduce fuel consumption by 49%.

Similar credit agreements are signed with agricultural company "Mriya" (Kolomakskyy district, Kharkiv region) – USD 241,000; "Novyy Sad" (Kegychivskyy district, Kharkiv Region) – USD 325,000; LLC "Preobrazhenske" (Orikhivskiy district, Zaporizhzhya region) – USD 250,500; "Skhid Avia Agro" (Balakliysky district, Kharkiv region) – USD 337,000; OJSC "AgroFirm Verbivske" (Balakliysky district, Kharkiv region) – USD 515,000; "Yug-Agro" (Zaporizhzhya region) – USD 69,000.

There is a new 1.37 MW ground-based solar power plant among the projects of UKEEP program. The project is implemented by LLC "Pluton Solar" (Kazanivskyy district, Mykolaiv region). It is expected to generate an annual 1.6 GWh of clean energy during 1 160 full load hours. The power plant is expected to generate enough energy to give a CO2 emissions reduction of more than 25 000 tonnes during the project lifetime. Investment size is approximately EUR 5 mln. Payback period is 7 years. Yearly sales income is expected to exceed USD 1.1 mln., giving a project IRR of 23%. This project is component of a larger 10 MW project that is expected to generate 11.6 GWh per year.

One more project within the program is purchasing new equipment for mining company "Shpat" (Zhytomir region). It is engaged in mining of pegmatites (minerals – widely used in industry). The annual production capacity is more than 50,000 tons in 6.4 hectares. The project will allow the company to reduce fuel consumption by more than 25% and, at the same time, to increase the production by about 50,000 tons of kaolin per year. An investment of USD 300,000 will reduce fuel consumption by 27,000 litres and thereby save USD 32,000 a year.

During the meeting the Deputy Chairman of "MEGABANK" Aleksey Yatsenko said that there were 6 new projects in progress for total amount of USD 9.5 mln. Credit resources are aimed at replacing old machinery, purchasing new equipment, upgrading production lines of heavy workstations and starting new wind power station.

Reference. Taking part in energy efficiency program UKEEP is the third project of "MEGABANK" together with EBRD. (There are 2 long-term programs to support micro, small and medium sized businesses for USD 20 mln. and for USD 15 mln.)

UKEEP is a credit facility developed by the European Bank for Reconstruction and Development (EBRD), targeting Ukrainian private companies in all sectors looking to invest in energy efficiency or renewable energy projects – investments that will decrease energy consumption, increase own energy production or make energy usage more efficient. UKEEP provides free technical assistance by international energy efficiency experts for companies with project ideas that are eligible for UKEEP financing.