EBRD lends US$ 79 million to Ukraine’s EMSS

By Anton Usov

The European Bank for Reconstruction and Development is supporting one of Ukraine’s major machine-building companies through a US$ 79 million loan for the modernisation of its entire production complex.

Public JSC EnergoMashSpetsStal (EMSS) produces custom-made parts for wind and nuclear power generation units, the steel industry and shipbuilding. By upgrading all its major production facilities and processes, EMSS will significantly improve its operational efficiency and competitiveness, as well as reduce its energy consumption per production unit by nearly 25 per cent.

The project contributes to EMSS’s investment programme, which will be finalised in the second half of 2012 and will act as a model for future projects in one of Ukraine’s most energy-intensive manufacturing sectors.

The Bank’s loan, supported by technical cooperation funds provided by the UK government, will help a dynamic local company in its drive for modernisation and energy efficiency; enhance competition; improve transparency, corporate governance and the introduction of international environmental standards.

An energy efficiency audit, commissioned by the Bank, identified necessary additional investments of US$ 12 million. This will be partly financed by the Bank. These funds will, among other things, help EMSS implement a modern Energy Measurement and Management System. In addition, the EBRD/EIBMultilateral Carbon Credit Fund intends to purchase carbon credits that will be generated by the company in line with the implementation of a modernisation programme and energy efficiency investments.

EMSS is a division of the Russian holding Atomenergomash, a power engineering division of the state corporation Rosatom of Russia that acquired the controlling stake in EMSS in 2010. By becoming part of Atomenergomash, EMSS expanded its cooperation with the corresponding enterprises in Russia and the CIS.

The European Bank for Reconstruction and Development is the largest financial investor in Ukraine. As of 1 September 2011, the Bank had committed over €6.7 billion (US$ 9 billion) through 281 projects.