CMEC provides EUR 134 million supplier's credit for 246 MW Nikopol Solar Power Plant Construction Project

Project narrative

In April 2018, China Machinery Engineering Corporation (CMEC), a state-owned subsidiary of Sinomach, and Donbas Fuel and Energy Company (DTEK), a privately held Ukrainian power company, signed an supplier’s credit (loan) agreement worth EUR 134 million (UAH 4,306,000,000) for the 246 MW Nikopol Solar Power Plant Construction Project. The loan carries an 11-year maturity period and an interest rate of 2.9%. The borrower also purchased a credit insurance policy from Sinosure. The proceeds of the loan were to be used by the borrower to finance an EUR 170 million commercial contract that CMEC and DTEK signed in April 2018. The purpose of the project was to construct the 246 MW Nikopol Solar power plant (Нікопольська сонячна електростанція) in the central Dnipropetrovsk region of Ukraine. CMEC was the general Engineering, Procurement, and Construction (EPC) contractor. However, multiple Chinese subcontractors were involved in the implementation of the project. Seraphim Solar and Trina Solar were selected as suppliers of solar panels. KSTAR was selected to supply inverter substations. Xian Electric Engineering was selected to supply transformers (all of them are Chinese companies). Construction of the solar power plant started in April 2018 and was completed in March 2019. The power plant has been generating green electricity since March 1, 2019. The resulting reduction of CO2 emissions is expected to reach 300,000 tons a year while electricity generation will reach 280 million kWh.