Active Development AidData Chinese Aid

China Eximbank pledges $1.25 billion loan for 700-750MW Gas-Fired Power Station Construction Project in Shcholkine, Crimea

$1.25M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Ukrainian Ministry of Fuel and Power
Country	Ukraine
Start Date	Jun 20, 2010
End Date	Nov 01, 2030
Duration	7,439 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`66087`

Grant Description

China Eximbank pledges $1.25 billion loan for 700-750MW Gas-Fired Power Station Construction Project in Shcholkine, Crimea On June 20, 2010, China National Machinery Industry Corporation (Sinomach), and the Ukrainian Ministry of Fuel and Power signed a Memorandum of Cooperation regarding the construction of a 700-750MW gas-fired, combined-cycle power station in Shcholkine (also Scholkino or Shcholkino or Щолкіне), Crimea.

The contract value of the Gas-Fired Power Station Phase I Project in Shcholkine of Crimea is $1.5 billion, including an 850MW gas-fired power station, natural gas pipelines and power transmission and transformation projects.

On September 2, 2010, China Eximbank, Sinomach and the Ukrainian Ministry of Fuel and Power jointly signed the “Tripartite Cooperation Agreement for the Construction of a Gas Power Station in the Crimean City of Crimea, Ukraine” for bilateral cooperation between the two countries. Under this agreement, China Eximbank agreed to provide a loan of UAH 10 billion ($1.25 billion).

The Ukrainian government agreed to provide a sovereign guarantee in support the loan. Under the same agreement, Sinomach signed an EPC contract for the construction of the power station.

Then, on March 23, 2012, during a working visit from Ukrainian Deputy Minister of Fuel and Energy Makukha, additional meetings were held regarding a potential loan from China Eximbank for the steam and gas power plant in Shcholkine. Only a cooperation agreement was signed during this visit and no funding was committed.

Then, on October 15, 2012, the Verkhovna Rada of Ukraine authorized a sovereign guarantee for "the project for construction of the combined cycle electric generating plant in the city of Shcholkine to the amount of UAH 10 billion." The approval of a sovereign guarantee was intended to encourage China Eximbank to move forward with the loan agreement.

However, there is no clear evidence that a loan agreement was ever finalized.

📋 Staff Comments

The project name in Ukrainian is проекту будівництва паргозової електростанції (ПГЕС) в м. Щолкіне.

📚 Sources & References

国机集团与乌克兰能源动力部签署乌克兰克里米亚谢尔基诺市燃气电站建设项目合作协议
中国与乌克兰经贸合作的最新进展及发展潜力
President Hu Jintao and President Yanukovich Witness the Signing of the Agreements on Two Major Projects
Construction of 750-800 MW combined cycle gas turbine power plant in Crimea
国机集团与乌克兰燃料动力部和中国进出口银行共同签署合作协议
SINOMACH-Ukraine Economic and Trade Cooperation Surges
陈有进一秘陪同中国进出口银行公司业务部副总经理文虹拜访乌能源和煤炭工业部, У м.Пекін з робочим візитом перебувала делегація Міністерства енергетики та вугільної промисловості України
A power plant in the Crimea will be built on Chinese credit
Construction of a power plant in Shcholkin will ensure energy independence of Crimea
On intensifying cooperation in the implementation of joint Ukrainian-Chinese projects
GOVERNMENT PROPOSES UAH 10 BILLION OF PUBLIC GUARANTEES TO CHINESE ENERGY PROJECT IN CRIMEA
Parliament supports China's energy project in Crimea
Social Responsibility Report Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.