Naftogaz figured out how to spend Chinese loan

Нафтогаз придумал, как потратить китайский кредит

Naftogaz plans to start using Chinese money to the end of the year

The Ukrainian side must submit a list of PRC investment projects for obtaining 3,65 billion dollars of credit.

Naftogaz of Ukraine has proposed that due to the Chinese credit in $ 3.3 billion to Finance the modernization of individual heating systems in private homes of low-income consumers ($1.7 billion), construction of thermal power plants in Kyiv and the Lviv region to reduce gas imports ($1.3 billion) and the purchase of equipment for gas production increase of Subsidiary ($0.4 billion).

As stated in the company, corresponding to four of the investment proposal the company submitted to the Ministry of economic development and trade to evaluate their cost-effectiveness and inclusion in the State registry.

Naftogaz recalls that the total value of the Chinese loan of $3.65 bn, and investment offer one investment for these funds is to establish individual heat substations in apartment buildings is currently being developed by the Ministry of regional development.

“For Ukraine, a loan agreement with UIR China is now the largest potential source of project financing energy efficiency and reduce consumption of imported energy. The cost of these funds also are the most affordable compared to other possible funding sources such volume”, – stated in the message.

According to him, RRT PRC expects the economic development Ministry’s official letter with the list of projects that the Ukrainian side intends to Finance through the credit line. In case of preliminary approval of these projects by the Bank Naftogaz will be able to carry out the following steps to confirm with government guarantees on the updated list of projects and submit to the Bank requests for individual loans for each of the projects, said in a release.

According to him, under the terms of the agreement, the deadline Naftogaz Chinese Bank ends June 24, 2016, and the sample means on at least one project must begin no later than 25 December of the current year.

Note that the agreement with the national Bank of China was signed in February last year.