The following Nuclear Power Plants are located in Ukraine:
- The partly built unit two at Khmelnitski nuclear power plant (K2) unit and
- The partly built unit four at Rovno nuclear power plant (R4).
Energoatom, the National Nuclear Power Operator of Ukraine, operates these plants.
Ukraine/Energoatom launched a project to complete and modernise K2 and R4 at an estimated cost of USD 1.5 bn.
With a view to financing this Project, Energoatom, with the support of the Government of Ukraine, requested a Euratom loan to partially finance the Project. According to the regulations, the Euratom loan cannot exceed 50% of the total eligible costs of the Project investment.
Energoatom, supported by a guarantee from the Government of Ukraine, planned to assume responsibility for the projected Euratom loan.
To date TACIS has financed studies by western experts on the safety aspects of K2 and R4. The objective of such studies was to identify measures that should be implemented in the Project so as to bring the safety of the plants up to a level equivalent to current practice in the west. An Environmental Impact Assessment, consistent with Euratom procedures, was completed with TACIS support. In addition, TACIS was financing the western support to the Project Management Group in Kiev.
The objectives of this contract were:
- To provide the first drafts of the contractual documentation for a Loan Agreement between the Commission and Energoatom for a Euratom loan.
- To provide the first drafts of the contractual documentation for a Guarantee Agreement between the Commission and Ukraine for a guarantee to the agreement as per 1.
The project was carried out according to the objectives stated above.
- On the basis of the loan Term Sheet provided by the Commission the contractor, during the first phase and in discussion with the Commission's Euratom loans unit of DG II-SOF prepared drafts of the identified deliverables for approval by the Commission.
- Once the draft texts of the documents were agreed with the Commission, the contractor supported the dialog with the borrower and his Government.
The Contractor was required to apply any modifications and provide a second draft. If further drafts were required, these were the object of a further request for services at a later stage.
Two deliverables were produced:
- Draft Euratom loan agreement
- Draft Euratom guarantee agreement.
First draft versions of the above were delivered within 6 weeks of signature of the contract within the Framework Agreement. Second drafts were produced within 4 weeks of receiving the comments from the Client via the Commission.