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Nuclear Safety Cooperation

Legal advice for EURATOM Loan - K2 R4

Status
Closed
Ukraine
Benefitting Zone
Eastern Europe
€ 341,956.29
EU Contribution
Contracted in 2002
TACIS
Programme
Technical Assistance to the Commonwealth of Independent States

Details

Nature

Services

Contracting authority

European Commission

Method of Procurement

(FR2007) Restricted Call for Tender - External Actions

Duration

05/05/2004 - 05/05/2007

Contractor

LINKLATERS PU

Project / Budget year

WW9920 Tacis 1999 Nuclear Safety / 1999

Background

Energoatom, with the support of the Government of Ukraine, requested a Euratom loan to part-finance the K2R4 Project. Representing the European Atomic Energy Community (Euratom), the European Commission in 2000 took a decision approving a loan for the EUR equivalent of USD 585 million. In parallel, the EBRD was prepared to co-finance the Project with a loan of USD 215 million. The European Commission worked very closely with the EBRD for the implementation of these decisions. In particular, the Euratom Agreements were harmonised with those of the EBRD. However, the Ukrainian government decided to request for additional discussions regarding some of the financial conditions included in the Agreements. Negotiations between Ukraine/Energoatom and Euratom/ EBRD were very difficult and time consuming. Consequently, it became necessary to draft new/amended Agreements that would be signed once the loans were approved by the EBRD and the European Commission.

Objectives

The objectives of this contract were as follows:

Provision of legal advice in connection with the Euratom Loan for completion and modernisation of Unit 2 of Khmelnitsky and Unit 4 of Rovno nuclear power plants (“K2R4 Project”).
Provision of legal advice in connection with the satisfaction of the Conditions Precedent of the Euratom Loan, and in connection with the first disbursement of the Euratom Loan for the K2R4 project.
Screening of associated documents required in Ukraine with the aim of gaining information relevant to the aim of the contract.

Results

All the contractual documentation between the beneficiary, the State as a guarantor and the European Commission was prepared, considering in particular the protection of the beneficiary’s interests in relation to the aspects of technical safety, compliance with European Community and international standards concerning environmental protection, the soundness of the financing plan and interaction with other operators involved directly or indirectly in the preparation of the Project.
The Consultant (The British company Linklaters & Paines) gave support to the negotiation of the contractual documentation by:

Participation in meetings, setting out the position of the beneficiaries and the European Commission
Conceptual and physical preparation of the appropriate contractual documentation
Negotiation and assistance in the contractual negotiations with all co contracting parties
Analysis and proposals on the positions taken by the beneficiary’s and the European Community’s co contracting parties
Study and analysis of the relevant aspects of the legal system of Ukraine and of the administrative, legal and judicial practices of Ukraine.
The Conditions Precedent was reviewed for availability of a loan following completion of the agreements and for the first disbursement. The Consultant provided assistance to the beneficiary and other contributing parties to complete the Conditions Precedent: drafting and issuing a Legal Opinion on English and on Ukrainian law.
The Consultant redrafted and finalised the documents required during the negotiations, and provided advice and assistance to the signing of the contract.
The works above described were carried out during the period 05/2004 – 05/2007.