The project is primarily aimed at supporting the sustainability of the work of PrJSC "Ukrhydroenergo" by providing assistance in financing the supply and, with the consent of the Bank, the installation of critically important hydropower and hydromechanical equipment that has undergone significant physical wear and tear over the years of operation and has become obsolete, has been repaired many times and does not meet modern requirements for HPP equipment. The project also provides for a component with the allocation of funds for the restoration of equipment in the event of an unforeseen emergency at all hydroelectric power plants of PrJSC "Ukrhydroenergo", which will allow for a prompt response to events related to martial law, taking into account the systematic attacks of the Russian Federation on Ukrainian energy sector facilities. All project facilities are located in Ukraine The project is divided into two Credit Lines. Credit Line A: Confirmed special programs Technical repair and modernization of three key hydroelectric power plants. 1. Kaniv HPP 1.1: 25 emergency repair gates (upstream) 1.2: 25 debris screens 1.3: 9 downstream repair gates 1.4: Generator and turbine (hydro unit No. 2) 2. Kremenchuk HPP 2.1: 2 gates 2.2: 10 wave reflectors (steel) 3. Dnipro HPP 3.1: 17 debris screens 3.2: 9 (nine) steel rope hoists (one set) for lowering and raising the inlet gates of the watercourse. For the avoidance of doubt, the costs associated with engaging a consultant for the implementation of the project are eligible costs under the Project. Credit Line B: Emergency Response Immediate response measures to ongoing military aggression that still need to be defined and allocated. In addition to the specific programs listed under Credit Line A, the following hydropower projects may also be included in these contingency response measures: Kyiv Hydroelectric Power Plant and Hydroelectric Power Plant Cascade, Kaniv Hydroelectric Power Plant, Kremenchug Hydroelectric Power Plant, Sredneodneprovska Hydroelectric Power Plant, Dniester Hydroelectric Power Plant, Dniester Hydroelectric Power Plant, Dniester Hydroelectric Power Plant, and DniproHES-2.

Replacement of hydropower and hydromechanical equipment for the Kanivska HPP branch: Outdated hydropower equipment (generator and turbine) of hydrounit No. 2 of the Kanivska HPP requires greater costs and time for repair, which in turn may lead to increased downtime of the HPP generating equipment and emergency shutdowns from the network. In addition, the replacement of equipment within the framework of the Project provides for the reconstruction of hydrounit No. 2, which will allow to increase its production capacity by 3.5 MW (the installed capacity of the hydrounit after reconstruction will be 22 MW), increase the capacity of the hydrounit and the station as a whole, increase operational reliability and trouble-free operation of the station, reduce costs for repair and maintenance. Purchase of hydromechanical equipment for the Kanivska HPP branch: Emergency repair and repair gates at the station have been in operation for over 50 years. Given the rather long service life of hydromechanical equipment that has undergone physical wear, it requires urgent replacement. The urgency of the need to replace the equipment is caused by the need to carry out planned major and current repairs of hydraulic units, the failure to perform which will reduce the service life of the HPP equipment and reduce the operational reliability of the equipment. At the same time, the unsatisfactory condition of emergency repair and repair gates may lead to a postponement of technical maintenance of hydraulic units, which requires draining the flow part to ensure safe conditions for work. As a result, untimely maintenance may lead to failures and emergency shutdown of hydraulic units and underproduction of electricity, which is unacceptable with a shortage of peak capacities in the unified energy system of Ukraine during the ongoing military aggression of the Russian Federation. Garbage retention grates also require replacement, given their unsatisfactory condition, which has arisen due to a long service life of over 50 years. Garbage retaining grates perform the function of protecting equipment from foreign objects; in the event of a grate failure, this may lead to damage and long-term repair of hydraulic units, corresponding to the loss of generating capacity. Implementation of the planned measures will increase the operational reliability of the entire facility and the trouble-free operation of the station. Purchase of hydromechanical equipment for the Kremenchuk HPP branch: Repair gates at the station have already been in operation for over 60 years. Given the rather long service life of hydromechanical equipment, this has caused an unsatisfactory condition of the equipment, which requires urgent replacement. Postponing the planned replacement of equipment may negatively affect the implementation of planned major and current repairs of hydraulic units, which will reduce their service life and reduce the operational reliability of the equipment. At the same time, the unsatisfactory condition of the repair gates may lead to a postponement of the maintenance of the hydraulic units, which requires draining the flow part to ensure safe conditions for the work. As a result, untimely maintenance may lead to failures and emergency shutdown of the hydraulic units and underproduction of electricity. The wave reflector equipment requires replacement due to their significant corrosion damage. The absence of wave reflectors may lead to additional load on the dam and damage to the hydraulic structure. Replacement of equipment within the framework of the Project will allow to avoid failures and emergency shutdown of the hydraulic units in a timely manner, which is unacceptable in the case of a power shortage in the unified energy system of Ukraine during the ongoing military aggression of the Russian Federation, will allow to increase the operational reliability of the entire facility and the trouble-free operation of the station. Procurement of hydromechanical equipment for the Dniprovska HPP branch: The waste retaining grids at the station need to be replaced, given their long service life of over 50 years. The unsatisfactory condition of the waste retaining grids can lead to damage (ingress of foreign objects) and long-term repair of hydraulic units, corresponding to the loss of generating capacity. The rope lifting mechanisms need to be replaced, given their long service life. This equipment is installed above the inlets of each turbine water conduit of the Dniprovska HPP-1 and is intended for maneuvering emergency repair gates. Replacing the equipment will allow for timely implementation of the necessary work to ensure reliable and trouble-free operation of the station, will increase the operational reliability of the entire facility and the trouble-free operation of the station. Contingency and Emergency Response Component (CERC): The Project plans to provide funds that will be used to take urgent measures to prevent an emergency or immediately respond to an emergency that has already occurred, by purchasing, with the consent of the EIB, equipment damaged as a result of military attacks by the Russian Federation, and carrying out restoration work at all facilities of PJSC "Ukrhydroenergo", which is especially relevant given the systematic massive drone and missile attacks by the Russian Federation on energy facilities in the context of ongoing martial law.