The Ukrainian energy sector currently needs more than just repairing what has been destroyed by Russian attacks. Equipment can be replaced. What is much more challenging is to ensure that the upgraded facilities keep operating effectively and that Ukrainian specialists possess the competencies to work with new technologies.

Such an approach is envisaged by a new project of the European Bank for Reconstruction and Development (EBRD) for Ukrhydroenergo.

The EBRD is providing the company with up to €75 million in loan financing to restore the damaged and worn-out components of Ukrainian hydropower plants and procure critical equipment. The loan is backed by a European Union guarantee under the Ukraine Investment Framework. The project may also receive up to €20 million in grants from international donors. Its total cost, including Ukrhydroenergo’s contribution, will be around €120 million.

However, the financing scope alone is not what is noteworthy.

Alongside equipment, the project provides for the formation of an emergency stock of electrical equipment, engagement of advisory support, and strengthening of competencies in procurement and contract delivery.

In addition, the EBRD plans to help Ukrhydroenergo establish a strategic training program for engineers and technicians who will work with modern hydropower equipment in accordance with European standards.

It is here that the project extends beyond ordinary equipment procurement.

Not only the facility is being restored, but also the capacity to manage it.

This is particularly crucial for the Ukrainian energy sector, which continues to operate under attacks. According to the EBRD, Ukraine’s hydropower facilities have suffered over 50 Russian strikes. Since the start of the full-scale war, the Bank has allocated over €3.2 billion to support the Ukrainian energy sector.

The modernization of HPPs under the new project is expected to increase their operational performance and enable the additional generation of around 223 GWh of renewable electricity per year.

For Ukraine’s reconstruction, this serves as a good example of how the logic of international infrastructure investment is gradually changing.

It is no longer just about the formula: “there is damage — money is needed — we procure equipment.” A single project now combines financing, modern technologies, professional training, procurement, contract administration, and advisory support.

For complex infrastructure begins with equipment but operates owing to people and well-organized processes.

For the Interstate Consultants Engineers Guild, this is a principle approach. Reconstruction brings back infrastructure, but Ukraine must build up its own engineering competencies and the capacity to professionally manage complex facilities throughout their entire life cycle.