Law of Ukraine
“On Ratification of the Credit Agreement (Project “Completion of the Construction of the Subway in Dnipropetrovsk”) between Ukraine and the European Bank for Reconstruction and Development”
Date of entry into force:
July 7, 2013
The Credit Agreement (Project “Completion of the Construction of the Subway in Dnipropetrovsk”) between Ukraine and the European Bank for Reconstruction and Development (hereinafter referred to as “Agreement”) was signed on July 27, 2012 in Dnipropetrovsk.
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 II of the Agreement, the European Bank for Reconstruction and Development (hereinafter referred to as “Bank”) agrees to supply Ukraine (hereinafter referred to as “Borrower”) with a loan of EUR 152,000,000 under the terms stipulated by the Agreement.
According to section 2.02, Article II of the Agreement, the minimum drawdown amount is EUR 1,000,000 for Part A of the Project and EUR 50,000 for Part B of the Project. The minimum early repayment amount is EUR 10,000,000. The minimum cancellation amount is EUR 1,000,000. Payment dates are June 2 and December 2 of each year. The Borrower repays the loan in 22 equal (or the nearest approximation of equal) semi-annual payments on June 2 and December 2 of each year, where the first payment date shall be December 2, 2016, and the last repayment date shall be June 2, 2027. The last date of fund availability is the date following four years after the Agreement date, or a later date to be decided at the Bank’s discretion and notified to the Borrower. If a fixed interest is accrued on the available loan amount or part thereof, and the Bank postpones the latest fund availability date, the Borrower shall immediately pay the Bank the amount of expenses associated with the change of terms, as notified in writing by the Bank from time to time. The commitment fee is 0.5% annual interest.
Implementation of the Project is regulated by Article III of the Agreement.
Article IV of the Agreement is dedicated to the terms of the Agreement validity.
The Project description is provided in additional Article 1 of the Agreement. The purpose of the Project is providing assistance to the Borrower in completion the construction of the subway in Dnipropetrovsk. The Project consists of the following Parts, which can be amended from time to time by mutual agreement of the Bank and the Borrower:
- Part A – Completion of the construction of subway in Dnipropetrovsk;
- Part B – Supervision of the construction works;
- Part C – The Bank’s technical monitoring;
- Part D – Support of the Project implementation and procurement;
- Part E – Corporate development;
- Part F – Developing an electronic fare system;
- Part G – Reviewing the public transport scheme;
- Part H – Carbon monetization.
The Project will be implemented by the Dnipropetrovsky Metropoliten Municipal Enterprise of the Dnipropetrovsk city council, with financial assistance of the Borrower and support of the Dnipropetrovsk city council.
The Law aims to ensure implementation of the Project “Completion of the Construction of the Subway in Dnipropetrovsk”.