Providing assistance to Ukrhydroenergo PJSC in financing the supply and, with the Bank's consent, the installation of critical equipment for the Dniprovska and Sredneodneprovska hydroelectric power plants, and (ii) providing emergency liquidity support to Ukrhydroenergo PJSC in order to ensure the sustainability of its operations, as well as by supporting emergency liquidity and increasing the efficiency of Ukrhydroenergo PJSC, strengthening its financial position in the face of military risks and the deterioration of the Company's liquidity caused by the consequences of full-scale military aggression by the Russian Federation. The project objective will be achieved by (i) financing capital costs for the turnkey supply (purchase, delivery to the construction site, installation and commissioning): • four turbines and generators for Dniprovska HPP-1; • two gantry cranes for Sredneodneprovska HPP. (ii) by financing critical operating costs through payments for electricity transmission and dispatching services

Hydropower units of Dniprovska HPP-1 No. 4, 5, 6 and 7, which are planned to be replaced within the framework of the Project, are being used at the limit of their capabilities. During the period of operation, the impellers, under the influence of intense dynamic loads during transient regimes (start-ups, stops, load shedding, transition from synchronous compensator mode to generator mode and vice versa), have undergone significant cavitation damage and cracks. Repairs of impellers due to corrosion fatigue of the metal do not provide the desired result and at the same time are ineffective due to long downtime of the units, which leads to a decrease in the average annual capacity of the HPP. At the same time, in connection with the military aggression of the Russian Federation against Ukraine and the targeted destruction of civilian infrastructure, a series of missile strikes were launched at the Dnipro HPP, which led to the destruction of the equipment and premises of the HPP, constant tremors that lead to mechanical damage, and increase damage to the joints of the structures of the equipment of the hydraulic units. The service life of the gantry cranes at the Sredneodneprovska HPP, which are planned to be replaced as a result of the implementation of the Project, has been going on since the beginning of the construction of the HPP and exceeds 50 years. Due to outdated crane equipment, planned repairs and current works are disrupted, which leads to the destabilization of the operation of the HPP of PrJSC "Ukrhydroenergo" as a whole. The cranes that need replacement are intended for loading and unloading operations at the station site and the building of the Sredniodniprovska HPP and for maneuvering repair gates, emergency repair gates, and debris retention grilles of the shield wall of the upper head of the Sredniodniprovska HPP. Both new gantry cranes with a lifting capacity of 75+10t and 2x105/2x15/5t will be installed on the existing KR 120 crane tracks at the HPP, instead of the obsolete KS-50t and 2x50/2x15/5t cranes.