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.

Additional details

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

Number of official sources

8

Number of total sources

14