RF - UkSATSE Liquidity Facility



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

07 Jul 2020



PSD disclosed:

10 Jul 2020

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

This project was approved in the context of the Bank's response to the COVID-19 pandemic.  To avoid delays to the delivery of this project, the Bank's President granted a deviation from the ordinary timelines for PSD disclosure, as contemplated by Section V of the Directive on Access to Information. Details of the Bank's response to COVID-19, and this deviation, can be found on our website.

A liquidity facility in the amount of up to EUR 25 million, split into Tranche 1 (up to EUR 12.5 million, to be committed at signing) and Tranche 2 (up to EUR 12.5 million, to be committed at the Bank's sole discretion), to support the Ukrainian State Air Traffic Services Enterprise ("UkSATSE", "the company").

Project Objectives

The proceeds of the loan will be used to finance critical liquidity and working capital needs of the company, thereby providing emergency liquidity support to mitigate the negative effects of the COVID-19 crisis.

To assist the company with meeting its debt service obligations, the Bank will also defer principal repayments under the Bank's existing loan to UkSATSE (BDS 11-310) for the period July 2020-April 2021 in the total amount of EUR 1.089 million.  Tranche 2 of the existing loan will be cancelled to manage the company's leverage position and in view of resulting changes to the company's investment priorities triggered by the COVID-19 crisis.

Transition Impact

ETI score: 75

The key sources of TI for the Bank's current project with the company are based on Well-Governed and Green TI qualities and comprise: (i) improved regulation by the State Aviation Administration; (ii) improved safety and business procedures and practices by UkSATSE; and (iii) further integration of Ukraine and UkSATSE into Eurocontrol and implementation of the Local Single Sky Implementation Programme (LSSIP).  

The liquidity support under the RF will allow the company to achieve the remaining TI benchmarks (further integration into Eurocontrol's Central Route Charges Office (CRCO) system and Ukraine's accession to the European Common Aviation Area (ECAA) agreement) as well as preserve the TI gains achieved to date, inter alia by ensuring successful implementation of the Local Single Sky Implementation Programme.  

Client Information


UkSATSE is Ukraine's state-owned air navigation services (ANS) provider. As a natural monopoly, it operates on a cost recovery basis. Approximately 98 per cent of the company's revenues are generated by provision of the air navigation services to airspace users, primarily airlines, and comprise (i) en-route (including transit) charges and (ii) terminal (approach and airdrome control services in Ukrainian airports) charges. 

EBRD Finance Summary

EUR 25,000,000.00

Total Project Cost

EUR 25,000,000.00


COVID-19 crisis response: EBRD financing effectively bridges a liquidity gap due to adverse market conditions, e.g. the COVID-19 crisis.

The Bank is highly additional in the absence of immediate available commercial financing provided on a sustainable for the company basis, as well as lack of access of the company to special financial assistance / loan packages offered by the industry's regulators (Eurocontrol).

Environmental and Social Summary

Categorised B (2019 ESP).  The Environmental and Social (E&S) risks and impacts associated with the air navigation services are limited and can be readily assessed and mitigated through good E&S management practices.  Environmental and Social due diligence (ESDD) has been undertaken in-house in line with the ESD's response to COVID-19 and consisted of a review of the Corporate and COVID-19 questionnaires, as well as past annual E&S reports, safety audit results from ICAO Universal Safety Oversight Audit Programme, a review of the Company's environmental and social (E&S) risk management arrangements under the ESD COVID-19 internal procedure and other publicly available information.

ESDD confirmed that the Company complies with the national laws and has adequate E&S risk management arrangements and capacity to implement the Project in line with the Banks E&S Performance Requirements (PRs).  The Company comprises of a number of subsidiaries involved in various operations within the Ukrainian aviation sector.  An internationally recognised integrated management system has been implemented and certified covering environmental (ISO14001) and Occupational Health and Safety (OHSAS 18001) at the group level.  The Company is also developing an energy management system which is in line with ISO 50001.  In 2020, the Company's air navigation services were independently audited under ICAO Universal Safety Oversight Audit Programme and achieved an effective implementation score that exceeds the global average.  A review of past annual E&S reports confirm they were satisfactory. The Company's operations are regularly audited by National Authorities to confirm compliance with Ukrainian labour, environmental and health and safety laws with no major concerns identified.  In addition, the Company is audited independently to confirm compliance with ISO certified systems.  There are four main trade unions established for the workforce and the organisation is covered by a collective bargaining agreements. Whilst Human Resources policies are in place, procedures and training are required to bring the Project into compliance with PR2 and PR4.  No operational or worker grievance have been reported. The Company does not plan any labour restructuring or redundancies within the next two years, should this change then the Company will need to prepare and submit to EBRD a Retrenchment Plan in line with PR 2.  The Bank will monitor the Company's environmental and social performance in accordance with the Bank's PRs through review of reports and monitoring visits as required.

Technical Cooperation and Grant Financing


Company Contact Information

Igor Blinov
+38 044 351 59 43
UkSATSE Airport Boryspil Boryspil-1 Kyiv region 08301 Ukraine

Implementation summary

PSD last updated

10 Jul 2020

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.


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