EIB and World Bank join forces with new agreement to support Ukraine
9 October 2015
The European Investment Bank (EIB) and World Bank (WB) today signed an agreement under EU guarantee that aims to facilitate the purchase of gas by Ukraine’s national gas company, NJSC Naftogaz.
The agreement was signed today by EIB President Werner Hoyer and World Bank Group President Jim Yong Kim. The EIB will guarantee up to USD 520 million of selected World Bank loans in Ukraine, which will enable the World Bank to guarantee letter of credit facilities for gas purchases by Naftogaz. Today's agreement was facilitated by a counter-guarantee of the European Union granting comprehensive cover to the EIB linked to risks of these selected WB loans in Ukraine.
EIB President Werner Hoyer commented: “European and global institutions are committed to helping Ukraine avert a potentially severe energy crisis as winter approaches.The guarantee agreement we signed today will facilitate Ukraine’s purchase of gas at a critical time. The deal reflects the EIB’s enduring support for Ukraine as part of EU cooperation with the country and the Union’s Eastern Neighbourhood region.”
“The new agreement is part of our broad support to the restructuring of the gas sector in Ukraine and it will contribute to adequate gas supplies for the next three years,” said Jim Yong Kim.“The World Bank Group is committed to continue supporting Ukraine’s ambitious reform program and we are pleased to work jointly with the EIB.”
The new agreement is part of the support for Ukraine by the European Union and international financial institutions, under which the EIB guarantees World Bank investment development projects in Ukraine. The EIB guarantee is structured under the 2014-2020 External Lending Mandate and benefits from the EU comprehensive guarantee.
The EIB has signed a SEK 3.5 billion loan agreement with the Region of Skane in Southern Sweden to finance the modernisation of the regional University Hospital in Malmö. The hospital is currently providing its services from buildings from the sixties and seventies, which are no longer fit for purpose. Skane’s regional council therefore approved a long-term investment programme to house the core medical services in new facilities and rehabilitate the existing facilities for administrative purposes.
Iberdrola today signed an agreement with the EIB and the Instituto de Crédito Oficial (ICO) to drive the green recovery by developing new renewable energy capacity in Spain. To this end, the EIB and ICO will provide €600 million and €200 million, respectively, to the Spanish energy company to finance the construction of over 20 projects with total capacity exceeding 2 000 MW. These new facilities will provide green, competitive energy equal to the average annual energy use of almost 1 million households.
With a view to promoting and expanding climate finance in Europe and beyond, the EIB and the International Climate Finance Accelerator Luxembourg (ICFA) have signed a Memorandum of Understanding (MoU) to strengthen their collaboration.