EBRD, IFC and Black Sea Trade and Development Bank provide Galnaftogaz with EUR157 mln loan for 147 MW wind farm in Volyn
The European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC) and the Black Sea Trade and Development Bank have announced the provision of a EUR157 million loan to Galnaftogaz Group for a 147 MW wind farm in Volyn region.
According to a release from the EBRD on Thursday, the financing is provided with the support of the European Union (EU), the United Kingdom and the Clean Technology Fund (CTF) of the Climate Investment Funds (CIF).
It is noted that this agreement was announced today in Kyiv.
"The financing package includes loans of EUR60 million from the EBRD and IFC and EUR37 million from the Black Sea Trade and Development Bank. The total cost of the project is estimated at EUR225 million (excluding VAT), with the remaining financing to be provided by the contribution of Galnaftogaz Group, which is implementing this project and is widely known in Ukraine under the OKKO brand," the release says.
The loans are provided to the project companies registered in Ukraine, Wind Power GSI Volyn LLC and Wind Power GSI Volyn 3 LLC.
It is expected that these wind farms with a total capacity of 147 MW will annually produce at least 380 GWh of renewable carbon-free electricity and will reduce CO2 emissions by approximately 245,000 tonnes per year.
The EBRD emphasized that the new project is one of the first private projects for the construction of generating capacities in the Ukrainian energy sector since the beginning of the Russian invasion in 2022.
The wind farm project, in particular, includes a technical cooperation component, which is implemented by the EBRD with funds from the TaiwanBusiness-EBRD Technical Cooperation Fund to strengthen the client's ability to detect cyber threats.