European Bank for Reconstruction and Development allocated 200 million euro for reconstruction of Ukrainian water power plants. A corresponding Loan agreement has been signed between Ukraine and EBRD, ForUm's correspondent reports.

According to ForUm's information, the loan is given for 15 years on fixed rate LIBOR+1 under state guarantees. It is planned to modernize 21 storage pumps on six Ukrainian water power plants.

"EBRD supports us on the most important projects of the energy sector, including the construction of high-voltage power network, reconstruction of gas transportation system, and modernization of water power plants. For these projects we expect 600 million euro loan. We are pleased that the means are allocated on very beneficial for our economy conditions," Energy Minister Yuri Boiko said after the signing ceremony.

In his turn, Ricardo Puliti, EBRD's managing director for Energy and Natural Resources, said that this year EBRD had financed the energy sector of Ukraine on the amount of 300 million euro. He expressed an assurance that the next year the cooperation between Ukraine and EBRD would be as much fruitful.

Puliti noted that financing of the modernization of Ukrainian water power plants is an important moment for European community, as this "meets our strategy on reduction of pollution while producing energy."

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