18 december 2008Partnership of Ukreximbank and EBRD supports practical steps towards Kyoto Protocol implementation in UkraineUkreximbank and the Multilateral Carbon Credit Fund (MCCF) jointly with JSC Ivano-Frankivsk Cement (IF Cement) plant agreed on a carbon deal.
JSC Ukreximbank has provided USD 80 million facility jointly with the EBRD’s USD 15 million inflows under Ukraine Energy Efficiency Programme (UKEEP) to finance modernization of IF Cement’s production facilities by applying the best available technology of "dry" cement production.
The Emission Reduction Purchase Agreement (ERPA) signed today stipulates for the purchase of carbon credits by MCCF for the period from 2008 to 2012. JSC Ivano-Frankivsk Cement carbon credits are generated by Joint Implementation scheme under the Kyoto protocol. The above project is the first in Ukraine under the UKEEP framework to benefit from a carbon finance transaction.
JSC Ukreximbank acts as an arranger of carbon deal and an agent to the Seller under the ERPA. GreenStream Network Plc. acts as a manager for MCCF.
"Since Ukraine has considerable potential for implementing GHG reduction projects to improve energy efficiency of industrial producers, JSC Ukreximbank seeks to financially support cooperation under the Kyoto Protocol mechanisms", – comments Ukrexim Chairman of the Board Viktor Kapustin, – "and the financing transaction for JSC Ivano-Frankivsk Cement is a vivid example."
Expressing his appreciation on the signing Jan-Willem van de Ven, MCCF head of Secretariat, has stressed significant potential for cooperation between MCCF and Ukrexim aimed at industrial modernization and protection of environment via Kyoto instruments.
The present JI project is expected to significantly enhance viability of JSC Ivano-Frankivsk Cement being a major employer in the region, as well as to bring benefit to Ukrainian cement consumers out of increased capacity and competition of cement producers.
***
For any additional information you are welcome to contact:
Ms. Vera Posadska, Head of Macro Analysis and Investor Relations Department
E-mail: vposadska@hq.eximb.com
Tel: +38 044 247 38 76
Fax: +38 044 247 80 82
Print version