Germany provides EUR 150 mln to Ukraine for modernization of substation in Donbas
Germany's credit institution KfW is providing a EUR 150 million loan for implementation of a project to reconstruct substations in eastern Ukraine.
The individual loan agreement between Ukraine's Cabinet of Ministers and KfW was signed on Monday in Kyiv at the ninth meeting of the Ukraine-Germany high-level group on economic cooperation.
An Interfax-Ukraine correspondent reported that Eva Witt KfW Director for Eastern Europe, Caucasus and Central Asia and Ukrainian Finance Minister Oleksandr Danyliuk signed the agreement.
"Today the Germany government seriously and structurally helps us in implementing the decentralization and energy efficiency reforms. The provision of the funds under the agreement signed is an important decision and a large help in restoring Ukrainian Donbas and the Ukrainian energy sector in general," Deputy Prime Minister and Regional Development, Construction, Housing and Utilities Economy Minister Hennadiy Zubko said at the meeting.
He said that the meeting of the Ukraine-Germany high-level group on economic cooperation is the basis for strategic partnership between the countries not only in energy efficiency and decentralization reforms, but in the transport sector and other directions.
As reported, on October 5, 2016, Ukraine's Cabinet of Ministers passed a resolution on reconstruction of four substations of national energy company Ukrenergo in Kharkiv and Dnipropetrovsk regions with a total cost of EUR 150 million using funds raised from Germany.
The substations would be reconstructed under a Ukrainian-German project on construction and development of infrastructure in eastern Ukraine. Its cost is EUR 500 million.
