This Resolution of the Cabinet of Ministers of Ukraine establishes the mechanism for PJSC “NPC “Ukrenergo” to attract a loan from the European Bank for Reconstruction and Development (EBRD) in the amount of 90 million euros. The funds are intended for the implementation of the project “Ukrenergo Resilience Support (Northern Region Expansion)”. The State acts as the guarantor for the company’s debt obligations under this loan.
**Structure and main provisions:**
The Resolution consists of three points regulating the feasibility of raising funds, the terms of providing a state guarantee, and the procedure for formalizing obligations. A key change is the establishment of specific financial parameters for the guarantee: the fee for it is set at 0.5% per annum of the loan amount. The document also obligates the relevant ministries to conclude an agreement with “Ukrenergo” on the repayment of debt to the state in the event that guarantee obligations are fulfilled.
**Important aspects for implementation:**
1. **State Guarantee:** The Government officially authorizes the provision of a state guarantee, which is critically important for international financing of the energy sector.
2. **Securing Obligations:** “Ukrenergo” is obliged to ensure the fulfillment of obligations under the guarantee at the level of 100% of the loan amount. The source of such security is defined as the proceeds from electricity transmission and dispatching service tariffs.
3. **Regulatory Component:** The NEURC is involved in the process of raising funds, which emphasizes the need to account for loan costs in the structure of the company’s tariffs.
