EBRD will become the owner of the shareholder of 35% of M10 Lviv Industrial Park, investments will amount to $24,5 million, $5,5 million of which will be allocated for financing of the completion of the first stage of the project, the press service of the EBRD informed.
M10 Lviv Industrial Park, a multifunctional industrial park located 60 km from the Ukrainian-Polish border and being built by Dragon Capital Investment Limited, will provide new manufacturing and logistics facilities necessary for sustainable humanitarian and economic activities in Ukraine during the war and post-war reconstruction.
According to the release, the EBRD will invest up to $24.5 million in total to develop the $70 million project, of which up to $5.5 million will be used to complete the first stage of the project. Construction of the first phase was interrupted by Russia’s military invasion of Ukraine in February 2022, but resumed in the summer. The first 14,400-square-meter warehouse complex is expected to be completed in the second half of 2023.
“This is an especially important project for Ukraine in these difficult times and EBRD investment will be a strong signal to local and foreign investors. By increasing the availability of high-quality storage facilities, the project will increase Ukraine’s access to vital services and products,” Vlaho Kojakovic of the EBRD was quoted in the release.
The EBRD’s investment in M10 Lviv Industrial Park closes the financing gap caused by unfavorable market conditions and is also in line with the EBRD’s stance on Ukraine and the bank’s overall response to the crisis.
“We are pleased to welcome the EBRD as our partner in this important infrastructure development project for Ukraine. The M10 Lviv Industrial Park, located near the EU border, will create new logistics and manufacturing facilities in western Ukraine, which are in high demand after the start of the full-scale Russian invasion,” Dragon Capital CEO Tomasz Fiala was quoted in the release.
As emphasized in the release, the EBRD sees a special mission in overcoming the current crisis. After more than 30 years of promoting economic transformation in Ukraine, the bank’s emergency response to the war is focused on supporting the country’s economy and preparing for future recovery.
In addition to strengthening energy security, EBRD financing for Ukraine is used to finance trade to support the circulation of essential commodities, food security and vital infrastructure. EBRD financing is also used to help refugees in neighboring countries and to help host municipalities.
In October 2022, during a visit to Kiev to meet Ukrainian President Vladimir Zelensky, EBRD President Odile Reno-Basso informed the Ukrainian leader of the Bank’s strong intentions to support Ukraine in its defense against Russian aggression and promised that the EBRD would provide up to EUR2 billion to help Ukrainian business and economy continue to operate. In 2022, the EBRD allocated EUR1.7 billion for Ukraine and attracted another EUR200 million through partner banks.
