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EY to be the financial advisor for construction project of Power Unit 6 at Sloviansk TPP

02/ 04/ 2020
  Kyiv, 31 March 2020. Donbasenergo PJSC commissioned EY as a lead financial advisor to follow up on the construction project of Power Unit 6 at Sloviansk TPP. EY will support the process of obtaining a sovereign guarantee of Ukraine, the negotiation process with the Bank of China, as well as other financial institutions, to raise finance for the project of Donbasenergo PJSC. Donbasenergo PJSC has already held an open tender and signed an EPC contract for the construction of Unit 6. Implementation of the Project will have a powerful effect on development of the electricity sector of Ukraine and on the economy as a whole, in particular: about 350 additional jobs will be created in the industry and 1,500 employees to be hired for the period of construction attraction of investment of about US$700 million increased tax revenues for state and local budgets potential reduction of electricity prices for end consumers Bogdan Yarmolenko, Partner, Transaction Advisory Services Leader, EY Ukraine, notes: “It is our privilege to share our experience and assist Donbasenergo in this distinctive project for Ukraine. It is just the right time now for the project implementation, from our country’s perspective and equally for our Chinese partners. Recovering from the pandemic, the latter are very interested in sizable projects. The Project will be even more important for the economic recovery of Ukraine: researches show every dollar invested in the infrastructure gives an average of 1.4 GDP growth. Moreover, Ukraine urgently needs success stories of attracting foreign investment. Large-scale projects usually require state support.” “Donbasenergo has already invested its US$40 million in the implementation of the Project. In addition, the Company needs to address a number of complex individual tasks: obtain the state guarantee to secure financing from the Chinese partners, agree with the Bank of China on acceptable for the project-financing terms and conditions, and secure other necessary forms of support. Our role is to help comprehensively balance the interest of the parties – using our knowledge and expertise – for the successful implementation of the Project,” adds Mykhailo Prykhodko, Associate Director, Transaction Advisory Services, EY Ukraine. Yevhenii Azimov, Senior, Transaction Advisory Services, EY Ukraine, comments: “In addition to the economic effect, implementation of the Project meets the strategic goals of Ukraine: Enhancement of the security of electricity supply within Ukrainian power system by creating new maneuvering capacity that will be used to balance renewables and ensure full integration with ENTSO-E; Implementation of new green standards of electricity production, which is continuously delayed in relation to thermal generation, and following emissions reduction.” About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In doing so, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. About Donbasenergo PJSC As of March 01, 2020, 60.86% holder of Donbasenergo PJSC is ENERGOINVEST HOLDING Private Joint Stock Company, 25% + 1 share are held by the state represented by the State Property Fund of Ukraine, 14.14% holders are other minority shareholders. Donbasenergo PJSC unites two power plants: Sloviansk and Starobeshevo TPP (the latter has been located in the territory beyond the control of Ukraine since 2014). Since March 2017, due to the loss of control over the temporarily occupied Donetsk Region, annual performance indicators of assets located there are not included in Donbasenergo consolidated records of accounts. The total installed capacity of Sloviansk TPP is 880 MW. Contacts Nataliya Letik Senior Marketing Specialist EY Ukraine +380 (44) 499 3364 [email protected]

Kyiv, 31 March 2020. Donbasenergo PJSC commissioned EY as a lead financial advisor to follow up on the construction project of Power Unit 6 at Sloviansk TPP.

EY will support the process of obtaining a sovereign guarantee of Ukraine, the negotiation process with the Bank of China, as well as other financial institutions, to raise finance for the project of Donbasenergo PJSC.

Donbasenergo PJSC has already held an open tender and signed an EPC contract for the construction of Unit 6. Implementation of the Project will have a powerful effect on development of the electricity sector of Ukraine and on the economy as a whole, in particular:

  • about 350 additional jobs will be created in the industry and 1,500 employees to be hired for the period of construction
  • attraction of investment of about US$700 million
  • increased tax revenues for state and local budgets
  • potential reduction of electricity prices for end consumers

Bogdan Yarmolenko, Partner, Transaction Advisory Services Leader, EY Ukraine, notes: “It is our privilege to share our experience and assist Donbasenergo in this distinctive project for Ukraine. It is just the right time now for the project implementation, from our country’s perspective and equally for our Chinese partners. Recovering from the pandemic, the latter are very interested in sizable projects. The Project will be even more important for the economic recovery of Ukraine: researches show every dollar invested in the infrastructure gives an average of 1.4 GDP growth. Moreover, Ukraine urgently needs success stories of attracting foreign investment. Large-scale projects usually require state support.”

“Donbasenergo has already invested its US$40 million in the implementation of the Project. In addition, the Company needs to address a number of complex individual tasks: obtain the state guarantee to secure financing from the Chinese partners, agree with the Bank of China on acceptable for the project-financing terms and conditions, and secure other necessary forms of support. Our role is to help comprehensively balance the interest of the parties – using our knowledge and expertise – for the successful implementation of the Project,” adds Mykhailo Prykhodko, Associate Director, Transaction Advisory Services, EY Ukraine.

Yevhenii Azimov, Senior, Transaction Advisory Services, EY Ukraine, comments: “In addition to the economic effect, implementation of the Project meets the strategic goals of Ukraine:

  • Enhancement of the security of electricity supply within Ukrainian power system by creating new maneuvering capacity that will be used to balance renewables and ensure full integration with ENTSO-E;
  • Implementation of new green standards of electricity production, which is continuously delayed in relation to thermal generation, and following emissions reduction.”

About EY

EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In doing so, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.

About Donbasenergo PJSC

As of March 01, 2020, 60.86% holder of Donbasenergo PJSC is ENERGOINVEST HOLDING Private Joint Stock Company, 25% + 1 share are held by the state represented by the State Property Fund of Ukraine, 14.14% holders are other minority shareholders.

Donbasenergo PJSC unites two power plants: Sloviansk and Starobeshevo TPP (the latter has been located in the territory beyond the control of Ukraine since 2014). Since March 2017, due to the loss of control over the temporarily occupied Donetsk Region, annual performance indicators of assets located there are not included in Donbasenergo consolidated records of accounts.

The total installed capacity of Sloviansk TPP is 880 MW.

Contacts

Nataliya Letik

Senior Marketing Specialist EY Ukraine

+380 (44) 499 3364

[email protected]

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