IFC funds development of biogas technologies in Ukraine

PRLog (Press Release) - Mar 31, 2010 -
According to "Interfax-Ukraine," International Financial Corporation (IFC) made a decision to invest $150 mln. in the program for development of higher level of energy-efficiency within agricultural and industrial sectors of Ukrainian economy. As Elena Voloshyna, the head of Ukrainian department of IFC stated, development of new technologies for production of biogas serves as the major focus of the program.

Nevertheless, Igor Aksyutov, CEO of Ukrainian engineering company ZORG has doubts about the future proper usage of the funds:

“The program itself and its goals are excellent, however very few companies will actually respond to the subsidized loan program. Once again, funds for development of biogas technologies won’t be used for the goals set by the program. Investors involved in the program are interested in working with trustworthy business partners, funding biogas project with budgets over $ 10 mln. Thus, the program targets less than a dozen large commercial agricultural holding companies in Ukraine, who already have an access to international financial market.

One way to make the program effective is to introduce guarantors for companies that are considered less trustworthy by IFC. Insurance companies or a governmental mortgage fund created for the occasion could function as guarantors in the following case.”