19 October 2018
Promoter – Financial Intermediary
KERNEL HOLDING SA
The project consists of the financing of two inland grain silos, a grain handling and storage terminal located within the Port of Chernomorsk, five biomass-fired combined heat and power plants (CHPs) and one sunflower oil crushing plant, in different locations in Ukraine.
EIB funds are expected to enable the company to improve trade and export logistics by constructing new grain silos (accessible also to third parties) and transhipment facilities. It will directly support the upgrade of agricultural facilities and contribute to aligning with the EU standards in the country.
Through the construction of a new greenfield sunflower oilseed production plant, which is expected to incorporate best available technology, the company should be able to be more resource efficient, consolidate its competitive position and, therefore, increase its market share both in Ukraine and in the EU.
Finally, the construction and installation of several biomass-based CHP units will contribute to the country infrastructure and will contribute to the increase of Renewable Energy production, thereby contributing to the integration of Ukraine into the European energy system.
The project will also create new employment and help secure existing employment in rural areas and, therefore, contribute to agriculture/bio-economy in Ukraine.
Under ELM Guarantee
This operation is covered by the ELM Political Risk Guarantee.
Proposed EIB finance (Approximate amount)
USD 250 million (EUR 219 million)
Total cost (Approximate amount)
USD 519 million (EUR 454 million)
All of the project's components are expected to be operated and implemented in conformity with applicable national and EU environmental legislations.
The Bank will require the promoter to ensure that any procurement procedures are done in accordance with the Bank's Guide to Procurement and the relevant applicable EU public procurement rules.
Signed - 18/12/2018