On 19 December, representatives of the Ministry of Finance of Ukraine and the European Bank for Reconstruction and Development (EBRD) reviewed the portfolio of joint projects for the first time in two years.
The event was chaired by Deputy Minister of Finance of Ukraine Olga Zykova and EBRD Managing Director for Eastern Europe and the Caucasus Matteo Patrone and held online.
The review was also attended by representatives of the Ministry of Energy of Ukraine, the Agency for Infrastructure Reconstruction and Development of Ukraine, NPC Ukrenergo, JSC Ukrzaliznytsia, NJSC Naftogaz of Ukraine, PJSC Ukrhydroenergo, JSC Ukrposhta and other beneficiaries of joint projects with the EBRD.
The Deputy Minister of Finance of Ukraine thanked the Bank's representatives and the teams of the Ministries and project beneficiaries for their work and close cooperation within the EBRD project portfolio.
"We are grateful to the Bank for understanding the needs of Ukraine and prompt decision-making in the extremely difficult economic conditions caused by the russian invasion, as well as for a significant increase in investments. During the period of countering Russian aggression, the EBRD played an important role in supporting liquidity and sustainability of public sector entities. The opportunity to review the portfolio of joint projects in detail is an important stage of cooperation, which helps to improve project implementation mechanisms and increase the level of use of credit funds within development projects," Olga Zykova said.
There are 12 joint projects with the EBRD under implementation with a total loan volume of EUR 2.56 billion. As of December 2023, the Bank's funds disbursed under these projects amounted to EUR 1.61 billion (62.8% of the total amount borrowed).
Special attention was paid to initiatives to support the energy sector, in particular the preparation of the Special Capital Support Project for NPC Ukrenergo, under which a loan of EUR 150 million will be used to cover the Company's critical operating expenses to ensure stable and uninterrupted electricity transmission services throughout Ukraine.
The Deputy Minister of Finance stressed that the effective work under this project will help to improve the energy security of the state and stabilise the Ukrainian electricity market in times of war.
As part of the discussion of the current state of preparation and implementation of investment projects, the parties discussed the main reasons for delays in the implementation of certain projects and agreed on further steps and deadlines for their implementation.
Olga Zykova noted that the review of the EBRD's project portfolio in Ukraine should result in a clear action plan that will allow for the efficient use of available funding and its allocation to priority areas.
The Ukrainian side expressed hope that the EBRD will soon reopen its representative office in Ukraine in Kyiv to improve cooperation between the institutions and increase the efficiency of communication.
The EBRD is one of the largest institutional investors in Ukraine. As of December 2023, the total amount of funding allocated to Ukraine by the Bank was EUR 19.03 billion under 559 projects.