14 Mar 2019
EUR 102.26 million
Financial institutions and SMEs
|Date of loan:||16 Jul 2008|
|Customer:||Industrial Union of Donbass|
|Amount in USD:||USD 40 million|
|Amount in EUR:||EUR 25 million|
|NACE sector / loan type:||Electricity, gas, steam and hot water supply|
|Business area:||Industries and services|
This loan contributes to climate change mitigation: 100%
The 7-year-maturity loan totalling USD 40 million (EUR 26 million) has been provided for financing the installation of a combined cycle gas turbine for a power plant at the Alchevsk steelworks in Ukraine. The turbine will generate electricity by using gases which are by-products of the steel production. This will be one of three gas turbines at the steelworks' power plant with a total capacity of 450 MW. Once the power plant is set in operation, the Alchevsk steelworks will be almost self-sufficient in electricity supply.
The project is part of the Industrial Union of Donbass's USD 3.6 billion modernisation programme at its steelworks in Ukraine. The estimated cost of the 3rd turbine phase of the power plant is USD 200 million. Approximately 70% of the investment costs is being financed with debt, including loans from international financial institutions. The Industrial Union of Donbass is one of the leading East European steel producers running production operations in Ukraine, Hungary and Poland.
The project will help reduce air emissions from the Alchevsk steelworks. The new power plant will make the steelworks self-sufficient in electricity supply. A waste management plan covering the waste fractions generated at the power plant as well as the waste from the dismantling of the old power plant is due to be developed before the third turbine is commissioned and the dismantling begins. The social impacts of the project have necessitated the resettlement of people living in the power plant area. The resettlement has been carried out in accordance with NIB's requirements.