EBRD will provide a senior secured loan to Hydropower LLC for development, construction and operation of two small hydropower plants on the Bily Cheremosh River in Western Ukraine. Small hydro power plants with total capacity of 1.6MW will produce 6,470 MWh per annum which will be sold to the grid at the feed-in tariff.
Total financing needs for the project are estimated at EUR 3.8 million, which will be financed from the following sources:
(i) Hydropower equity contribution – EUR 1.8 million
(ii) EBRD senior loan – EUR 1.3 million
(iii) Clean Technology Fund senior loan – EUR 0.7 million from the EBRD CIF Special Fund.
Respective loan agreement was signed on 26 December 2012.
This project is the third project financed by the EBRD and the CTF in the framework of Ukraine Sustainable Energy Lending Facility (USELF).