Current news on Rebuild Ukraine topic

Ukraine to Hold Its First "Green" Auction to Stimulate Renewable Energy Development.

For the first time, the state enterprise "Guaranteed Buyer" in Ukraine has announced an online auction for the distribution of quotas to support enterprises that generate electricity using alternative energy sources. The auction is scheduled for October 31.

The first lot will be an additional annual support quota for producing electricity from solar energy, amounting to 11 MW. According to the auction terms, the solar power station must be located on the left bank of the Dnipro River, excluding temporarily occupied territories and active combat zones. The auction will follow a price reduction format to decrease the cost of "green electricity" for consumers. The maximum price proposal is set at €0.09 per kWh. Auctions will be held throughout the fall.

The allocation of additional support quotas will include 11 MW for solar energy, 88 MW for wind energy, and 11 MW for other types (biomass, biogas, small hydropower plants). This instrument aims to provide long-term guaranteed support to investors, enabling them to secure financial resources, create jobs, and establish new generation capacities.

Polish Export Credit Agency Insures Investments in Ukraine for Over $45 Million

For the first time, Poland's export credit agency KUKE has insured a production facility of a Polish company in Ukraine for more than $45 million. This marks the first collaboration between KUKE and the World Bank Group’s Multilateral Investment Guarantee Agency (MIGA) since the signing of a memorandum of understanding at the Ukraine Recovery Conference 2024 in Berlin.

Under the agreement, MIGA provides political risk insurance, which is reinsured by KUKE. This coverage protects against potential losses, including those arising from military actions.

Ukraine's Ministry of Economy highlighted that this agreement demonstrates the feasibility and importance of investing in Ukraine's economy even now. The country offers necessary tools for investor support and a well-developed system of war risk insurance. The next step will involve creating a comprehensive nationwide system of war risk insurance, which will make accessible insurance available not only to the private sector but also to the public.

Kyiv's Transportation Sector to End Dependence on Russia with Support from the European Investment Bank

The European Investment Bank (EIB) and Kyiv have signed a €50 million loan agreement to purchase new subway cars. This investment will help Kyiv Metro eliminate its reliance on Russian-made parts and enhance the resilience and reliability of the capital's transportation system.

The EU Delegation to Ukraine emphasized that before the full-scale war, nearly 80% of Kyiv Metro's rolling stock was produced in Russia, making it a critical strategic task to end this dependence. Over 60% of the existing metro fleet has exceeded its service life, and the new funding will allow the city to replace outdated cars with modern, energy-efficient alternatives sourced from local or international suppliers.

The €50 million is the first installment of a larger €200 million loan provided by the EIB. This initial funding will be used solely for purchasing new metro cars for Kyiv. The remaining €150 million will be allocated after the completion of a feasibility study assessing the comparative benefits of buying new subway cars versus upgrading part of the existing fleet.

Overall, Kyiv Metro will be able to replace or modernize 120-160 cars, significantly improving the city's transport infrastructure.

Ukraine's Electronic Communications Sector Sees 11% Revenue Growth in First Half of 2024

In the first half of 2024, the revenue of electronic communications operators in Ukraine increased by 11%, reaching ₴52.4 billion. The primary drivers of this growth were mobile communication services, which generated ₴31.8 billion, reflecting a 4% increase compared to the same period last year. Revenue from fixed internet services reached ₴11.7 billion, marking a significant 23.2% rise.

The electronic communications sector is also experiencing positive investment dynamics. Capital investment increased by 11.4%, totaling ₴8.8 billion. The number of companies making investments rose from 727 in the first half of last year to 928 in 2024. This uptick indicates a recovery in investor confidence in the industry, following a significant decline during the war, when the number of investor companies fell from a pre-war level of 1,031 to 693 in 2022.

This development demonstrates the potential for continued growth in Ukraine's electronic communications sector despite the challenges posed by wartime conditions, cyber threats, and economic difficulties.

Three Industrial Parks Receive ₴347.5 Million in State Grants for Infrastructure Development

Under the “Made in Ukraine” policy, three industrial parks located in the Zhytomyr, Zakarpattia, and Vinnytsia regions have been awarded a total of ₴347.5 million in state funding for infrastructure development.

The Korosten Industrial Park in Zhytomyr will receive ₴83.5 million out of the required ₴167 million for the construction of access roads. The BF Terminal in Zakarpattia will be allocated ₴148 million out of the necessary ₴316.6 million for building railway tracks and electrical infrastructure. The Vinnytsia Industrial Park will receive ₴116 million for the development of access roads, with a total project cost of nearly ₴232 million.

In total, ₴1 billion has been allocated in the state budget for 2024 to support industrial parks. According to the funding conditions, an industrial park can receive up to ₴150 million on a 50/50 co-financing basis. For industrial parks located in recently liberated territories, the government covers 80% of the expenses (up to ₴150 million). Additionally, a reimbursement of 50% of the costs for connecting to electrical networks is proposed, with a maximum amount of ₴150 million.