Ukraine, China Sign $3.7 Bil Loan Deal to Switch Power Plants from Gas to Coal
Ukraine's energy and coal industry ministry signed an agreement with China Development Bank on Jul. 13 securing a US$3.656 billion credit line to help the country switch its power plants over to coal from gas, the ministry said.
As part of the agreement China will offer its technological expertise for the work to be carried out, the ministry said in a statement on Jul. 13.
As part of the program to fuel its power plants with coal, Ukraine will also build gasification facilities in Ukraine, it said.
In 2010, Ukraine's energy ministry and China Development Bank signed an MOU on coal cooperation, under which the bank agreed to consider investing $1.03 billion in the modernization of seven state-owned coal mines in Ukraine.
In Jun. 2011, the bank agreed to provide an US$85 million loan to modernize the Melnikov mine owned by Ukrainian state-owned coal producer Lisichanskugol, according to the ministry.
The first tranche of US$16 million was made in Jun., the statement said.
(Platts Jul. 2012)