The European Investment Bank (EIB) is lending EUR 200 million to Ukraine`s Transport Ministry to support sustainable municipal transport through a modal shift from road to electric transport and more efficient operation of existing public transport systems in 20 municipalities across Ukraine, according to the Delegation of the European Union to Ukraine.
”The project will contribute to the implementation of the National Urban Public Transport programme promoted by the Government of Ukraine. It covers municipal schemes involving purchase of new or modernization of existing rolling stock, e.g. trolleybuses, trams and buses, rehabilitation and construction of public transport infrastructure as tram lines, bus lanes, stations, depots,” the EU Delegation said.
It will target up to twenty municipalities and will comprise multiple investment schemes varying from EUR 1 million – EUR 50 million. The final beneficiaries will be municipally-owned transport utilities or municipalities themselves.
The schemes to be supported under this loan are supposed to amount to total investment costs of some EUR 400 million, out of which EIB will co-finance up to 50%. The project will be also co-financed by a partner financing institution – the European Bank for Reconstruction and Development (EBRD).
”A higher customer service level and sustainability of public transport in medium-to-large- Ukrainian cities will increase the quality of life of citizens, improve environment and increase energy savings, leading to a higher economic output. I am glad that the EIB can contribute via strategic loans such as this one,” EIB Vice-President Vazil Hudak said.
On November 11, Ukrainian Infrastructure Minister Volodymyr Omelyan and Hudak are to sign a respective finance agreement under the project for the development of municipal passenger transport in Ukrainian cities, the ministry`s press service said.
The EIB – the European Union`s bank – finances projects in Ukraine on the basis of the EU External Lending Mandate, including also Eastern Neighbourhood countries comprising Ukraine. The mandate provides EIB with a guarantee covered by EU Budget for projects of significant interest to the EU and its Eastern Neighbours in the areas of local private sector development, social and economic infrastructure and climate change.
In 2014, the European Commission announced an EU support package amounting to EUR 11 billion for 2014-2016 for Ukraine in grants and lending. For its part, the EIB is contributing to this package by lending up to EUR 3 billion during 2014-2016, should political and operational conditions allow. The EU bank will focus on energy and infrastructure investment as well as access to finance for SMEs. Since the beginning of 2014 and by mid-November 2016, the EIB has already contributed – including the current loan – EUR 2.4 billion, supporting a series of high priority projects in Ukraine.
