This Resolution of the Cabinet of Ministers of Ukraine defines the mechanism for Private Joint-Stock Company “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 directed towards the implementation of the “Ukrenergo Resilience Support (Northern Region Expansion)” project. The State acts as the guarantor for the performance of the company’s debt obligations under this loan.
**Structure and main provisions:**
The Resolution consists of three clauses that regulate the feasibility of attracting funds, the terms for granting a state guarantee, and the procedure for formalizing obligations. A key change is the establishment of specific financial parameters: the fee for the state guarantee is set at 0.5% per annum of the loan amount. The document also mandates that the relevant ministries 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 assumes the risks for the loan, which requires “Ukrenergo” to provide counter-security.
2. **Source of Repayment:** Security for the performance of obligations to the state is provided through electricity transmission and dispatch control tariffs. The company must guarantee the repayment of funds in the amount of not less than 100% of the debt amount.
3. **Regulatory Control:** The NEURC (National Energy and Utilities Regulatory Commission) is involved in the process, which underscores the importance of the tariff component in ensuring the financial sustainability of the project.
