KIEV, June 27 (Xinhua) -- The Ukrainian cabinet has approved a loan of 149 million euros (169.5 million U.S. dollars) to state-run energy company Ukrenergo for modernizing power transmission networks, the Ukrainian Finance Ministry said Thursday.
The loan from the European Bank for Reconstruction and Development (EBRD) will finance the procurement of up to 26 new electricity transformers as well as the automation and upgrade of 12 high-voltage substations in key locations of Ukrainian transmission networks.
It allows Ukrenergo to implement a number of effective measures for its strategic development "and will strengthen the energy infrastructure," said the ministry's press release.
The total cost of the modernization project is 198.2 million euros (225 million U.S. dollars), of which 49.2 million euros (55.9 million U.S. dollars) are from Ukrenergo's own funds, according to EBRD data.
The project will enable Ukrenergo to upgrade its key transmission infrastructure to synchronize with the European Network of Transmission System Operators for Electricity.
