Slávka Dvořáková, moderator:
The Slovak Republic has received more than €100 million to support Ukraine’s critical energy infrastructure. For Slovak companies and exporters, this is an extraordinary business opportunity. We will now discuss the details with Rastislav Podhorec, CEO of Eximbanka. Good day.
Rastislav Podhorec, CEO of Eximbanka:
Good day to you.
Slávka Dvořáková, moderator:
Minister of Foreign Affairs Juraj Blanár informed that this is a historical success of Slovakia. Let us say more about it. How will Slovakia participate in this project?
Rastislav Podhorec, CEO of Eximbanka:
Thank you very much. Slovakia will participate in two ways. The first way is 2 agencies. It is us, the export credit agency, that is Eximbanka, and the Slovak Agency for International Development Cooperation, that is, that is the first way of assistance. We will be the ones who will finance the projects in Ukraine, and then there is a second way, and that is the way of Slovak exporters, who will participate directly in the reconstruction.
Slávka Dvořáková, moderator:
What specifically will our Slovak entrepreneurs be able to offer in this project of Ukraine’s reconstruction?
Rastislav Podhorec, CEO of Eximbanka:
But it will be a reconstruction of energy facilities. We can imagine this as those poles, as those power lines, plus some substations, i.e. that companies that are active in the area, i.e. that are doing reconstruction or construction of such facilities or construction companies will be able to take part in these reconstructions.
Slávka Dvořáková, moderator:
The negotiations between the governments of Slovakia and Ukraine resulted in the so-called Roadmap for joint activities. In short, 4 investments in Ukraine are highlighted. What specifically will they be?
Rastislav Podhorec, CEO of Eximbanka:
Very much in simplicity. Ukraine has made a big list, about 700 different projects that are very important for the reconstruction of the country and from this list, after negotiations between the Slovak and Ukrainian governments, a shorter list was made and from this list we have chosen 4 projects. These are the substation projects, the substation in and plus the infrastructure in the Mukachevo and Uzhhorod area and the transmission system in the Kuvarcit area and then the second project of a larger nature and that is the integrated solar and hydroelectric power plant.
Slávka Dvořáková, moderator:
How will Mr Podhorec proceed with the tendering process for the implementation of those projects?
Rastislav Podhorec, CEO of Eximbanka:
The public procurement, given that European Union and Commission funds will be used and will be carried out according to European rules, i.e. the Ukrainian clients of us, i.e. hydroenergo and energo, these are the clients that will prepare the public procurement. By the way, the aid also includes a Slovak share of the consultancy, so Slovakia will pay the consultants to prepare that tender. Subsequently, the terms of the tender will be published. And from there, it is actually proceeding in the way that is customary in the European Union.
Slávka Dvořáková, moderator:
Do we have enough companies to qualify for these projects?
Rastislav Podhorec, CEO of Eximbanka:
We certainly does. There are enough construction companies in Slovakia, but also companies that operate in the energy sector.
Slávka Dvořáková, moderator:
The total budget of the programme amounts to EUR 101.000.000. How will Eximbanka participate in all this?
Rastislav Podhorec, CEO of Eximbanka:
I have prepared an aid. It’s highlighted visually. As you said, EUR 101 000 000 is the value of the four projects, with the Eximbanka financing EUR 77 000 000, 90% of which will be covered by the European Commission guarantee, and the remaining resources are non-repayable, grant resources, and these are actually European Commission resources that will go through that SAMRS agency.
Slávka Dvořáková, moderator:
For Slovak exporters it is probably a riskier transaction. So what will be covered by the guarantees you mentioned?
Rastislav Podhorec, CEO of Eximbanka:
I would perhaps correct that, given that we are entering into the transaction as Eximbanka and SAMRS, it will not be a risky transaction for the exporters, because the resources needed for the construction and reconstruction will be covered by us, i.e. we will finance the reconstruction. So it will be a less risky transaction for those, for those exporters. If there are any risks, they will be related to securing their own capacities in Ukraine.
Slávka Dvořáková, moderator:
Let’s take the time aspect, when our Slovak companies could even find out about those first procurements.
Rastislav Podhorec, CEO of Eximbanka:
Given that we are negotiating the termination of the contractual documentation with the European Commission at the moment, we have timing information. Somewhere towards the end of the year we should have the documentation completed, i.e. the first tenders would be expected early next year.
Slávka Dvořáková, moderator:
Also, Mr Podhorec, if you will allow me, I cannot help but also respond to Donald Trump’s tariff policy. I will therefore take the opportunity of having you with us now. What is your reaction to this?
Rastislav Podhorec, CEO of Eximbanka:
Basically, we are familiarizing ourselves with that situation. It’s very fresh, I watched that live feed from the White House yesterday. We at Eximbanka are already preparing today and we are trying to find such products and such solutions for Slovak exporters so that they will be able to survive some time when the situation is unclear. The biggest enemy for companies is uncertainty. And it has essentially manifested itself at this moment.
Slávka Dvořáková, moderator:
That was Rastislav Podhorec, thank you very much and have a nice day.
Rastislav Podhorec, CEO of Eximbanka:
Thank you very much, goodbye.
Slávka Dvořáková, moderator:
That was Economy 24. We’ll be back with more economic news of the day tomorrow. Have a nice day and see you later.