Law of Ukraine
"On Ratification of the Financial Agreement (Hydro Power Plant Rehabilitation Project) between Ukraine and the European Investment Bank"
Date of entry into force:
December 24, 2013
The Financial Agreement (Hydro Power Plant Rehabilitation Project) between Ukraine and the European Investment Bank (hereinafter referred to as "Agreement") was signed on September 21, 2012 in Brussels.
The Constitution of Ukraine (Article 85, paragraph 32) states that the Verkhovna Rada of Ukraine provides consent for Ukraine to be bound by international agreements. And, according to Article 9 of the Law of Ukraine "On International Agreements of Ukraine", the Agreement is subject to ratification.
The Law ratifies the Agreement.
According to Article 1 of the Agreement, the European Investment Bank (hereinafter referred to as "Bank") provides to Ukraine (hereinafter referred to as "Borrower"), and the Borrower accepts a loan of EUR 200,000,000 for financing of the Project. The Bank shall disburse the Loan in 10 installments. The minimum amount of each installment, except for the first installment or the unused remainder of the loan, must be equivalent to EUR 20,000,000. Each installment is paid in EUR. The Borrower must pay to the Bank a loan set-up fee of EUR 500,000 under the Agreement. The Borrower shall pay to the Bank a commitment fee in EUR, calculated based on the daily undisbursed and unrevoked remainder of the loan, starting from the sixtieth day of the Agreement, at 0.10% annual interest.
Interest payments, principal payments, and other amounts payable in relation to each installment shall be paid by the Borrower in the currency of the installment. Any other payments are made in the currency determined by the Bank, with regard to the currency of the expenses being compensated by the appropriate payment (Article 2 of the Agreement).
The procedure for repayment of the loan is established by Article 4 of the Agreement.
Article 6 of the Agreement determines the obligations of the parties.
The Borrower shall pay all taxes, duties, fees and any other surcharges, including stamp duties and registration fees, that arise in connection with the execution or implementation of the Agreement or any document related to it, and in the process of creation, formalization, registration or enforced execution of any Loan security in the appropriate amount. The Borrower shall pay the principal amount, interest, compensations, and other amounts payable under the Agreement, in full, without deduction of any national or local fees, under the condition that if the Borrower must make such deduction, it will be added to the payment due to the Bank so that the net amount received by the Bank after such deduction is equal to the payable amount. If the Borrower must deduct any amount according to Article 9 of the Agreement, and the Bank subsequently receives compensation of such amount or any credit for any tax paid by it regarding any such payment, the Bank shall, immediately after receiving such amount or credit, pay the respective amount to the Borrower, but under the condition that the Bank has no obligation to request any such compensation or credit (Article 9 of the Agreement).
According to Article 10 of the Agreement, the Borrower must repay all, or a part of the loan funds provided, together with the interest accrued on that amount and any other unpaid amounts, after receiving a written request from the Bank, made in accordance with the subsequent provisions.
The Law is aimed at implementation of the Hydro Power Plant Rehabilitation project.