The European Bank for Reconstruction and Development will provide €5.6 million to a multicorporate enterprise Rengy Development that focuses on providing financial and implementation support for various projects in the sphere of alternative sources of energy development in the Eastern Europe.
Allocated funds will be spent on the construction of a solar power station in Vinnytsia region. Rengy Tomashpil, the Rengy Development subsidiary, will serve as a contractor for the SPS with the capacity of 5 MW.
According to the EBRD representatives, financial aid package includes €3.8 million provided by bank in the form of a loan for 6 years and €1.8 million issued by the Clean Technology Fund, channeled through EBRD, the World Bank and IMF, in the form of credit for 10 years. Approximately €3.8 million will be allocated by Rengy Development itself.
Financial backing for the SPS construction is provided within the framework of the Ukraine Sustainable Energy Lending Facility program that was launched to support local investors in power stations construction.
Under the USELF program terms, up to 50% of a project costs may be invested by EBRD, 20% of credit funds – by the Clean Technology Fund and the rest 30% have to be provided by the project investor.
Moreover, assistance will also be arranged by the Global Environment Fund (GEF), the largest international financial mechanism that provides investors with grants and concessional loans for the implementation of projects and activities aimed at solving global environmental problems. Thus, regulatory framework development and strategic environmental review are to be funded by GEF.
It’s not for the first time when EBRD finances the project in the area of solar power development. In 2012 bank funded the construction of another SPS in Vinnytsia Region.
Back then a contractor also was the Rengy Development subsidiary, Green Agro Service LLC.
Author: Ivan Prokhorov
