On December 16, Minister of Finance of Ukraine Sergii Marchenko met with Ambassador Extraordinary and Plenipotentiary of the Federal Republic of Germany to Ukraine Anka Feldhusen.

During the meeting, Sergii Marchenko signed the Guarantee Agreements within the framework of a new Project “Improvement of the Efficiency of Electricity Transmission (Substations Modernization) II” with Kreditanstalt für Wiederaufbau (KfW).

At the same time, Head of NPC Ukrenergo Volodymyr Kudrytskyi signed a Loan Agreement with KfW for EUR 32.5 million under the project “Improvement of the Efficiency of Electricity Transmission (Substations Modernization) II”.

According to the signed Agreements, NPC Ukrenergo will receive EUR 32.5 million loan from KfW under the state guarantee.

The financing will be used to modernize and automate 8 substations in the South-Western part of Ukraine, introduce automated process control systems and transform them into high-tech automated facilities that comply with ENTSO-E (European Network of Transmission System Operators for Electricity).

Also during the meeting, the Minister of Finance signed the Debt Deferral Agreements with KfW. In accordance with the Agreements reached on the settlement of the issue of payments, the repayment of Ukraine’s debt on the attracted KfW loans under four existing projects is postponed from 2022-2023 to 2027-2031.