The Cabinet of Ministers of Ukraine has ordered a governmental delegation to participate in negotiations with the German government on attracting a 17 million euro loan via KfW (Frankfurt on the Main) to realize the municipal program "Municipal Water Management Project, Phase I."
The decision is stipulated in cabinet resolution No. 35-r of Jan. 21, 2015.
The cabinet ordered that Finance Minister Natalie Jaresko be empowered to sign an agreement of financial cooperation between the Cabinet of Ukraine and the German government, as well as credit and project agreements between KfW, the Ukrainian government and Chernivtsivodokanal municipal company.
Under resolution No. 37-r, the Finance Ministry, with the participation of the National Commission of Ukraine for Energy, Housing and Utilities Services Regulation (NCER) and Chernivtsi Regional Administration, is to sign an agreement on the provision of a subloan to Chernivtsi City Council and Chernivtsivodokanal. The agreement is to foresee guarantees on the fulfillment of liabilities by the company on servicing and repaying the 17 million euros loan. The fee for the provision of the loan to Chernivtsivodokanal is 2 percent per annum of the used and unpaid sum of the loan.
In September 2014, the government in resolution No. 871-r approved a feasibility study on a project to reconstruct the water supply system in Chernivtsi, worth Hr 396.4 million.
