Municipal companies Chernihivvodokanal and Kolomyiavodokanal, water supply companies, have received $8 million and $2.6 million credits respectively as a part of the open compound of the World Bank's City Infrastructure Development project.
An Interfax-Ukraine correspondent reported that the credit
agreements between the company and the Municipal Economy Ministry were
signed in Kyiv on Tuesday.
The funds are issued under state guarantees for 20 years at Libor+4.01%.
Municipal Economy Minister Oleksiy Kucherenko said that on September
18 similar agreements were signed with Agency for Odesa’s Development
Programs municipal company for $10.14 million and Vodoteploservice
(Kalush) for $9.6 million.
The minister said that in the near future Kharkiv, Cherkasy,
Krasnodon, Drohobych, Kremenchuk and some other cities would receive
financing as a part of the open compound.
As reported, the Ukrainian government and World Bank started
realizing the City Infrastructure Development project in February 2009.
The World Bank has allocated a $140 million credit. The credit
agreement was signed by the bank and the cabinet on May 26, 2008. The
funds are issued under state guarantees for 17 years at Libor+4.01%.
The project is being realized through the selection and further
financial support of the most urgent investment projects in the water
supply, sewage and recycling of hard waste spheres, read the
information materials.
The financing of the project consists of main and open components,
which foresee $57.5 million and $80.5 million in investment
respectively.
Three cities were selected under the main component: Odesa with a
project for the upgrade of technological equipment in the water supply
and sewage systems in the city ($28.39 million) and a project on waste
recycling handling in Odesa ($7.14 million); Chernihiv with a project
on the upgrade of technological equipment in the water supply and
sewage systems in Chernihiv ($14.83 million); and Ivano-Frankivsk with
a project on the upgrade of technological equipment in the water supply
and sewage systems in Ivano-Frankivsk ($7.17 million).
As a part of the open component of the credit, a number of small
energy saving projects are foreseen for selection on a tender basis.
