KYIV. Nov 11 (Interfax-Ukraine) – The European Investment Bank (EIB) is lending EUR 200 million to the Ministry of Transport of Ukraine to support sustainable municipal transport infrastructure in 20 Ukraine’s municipalities.
An Interfax-Ukraine correspondent has reported that the agreement was signed by Ukrainian Infrastructure Minister Volodymyr Omelyan and EIB Vice President Vazil Hudak in the presence of Ukrainian Prime Minister Volodymyr Groysman on November 11.
“This project is important for Ukrainian cities. It allows to considerably upgrading municipal transport: this is the modernization of tram and trolleybus fleets. I would stress particularly that in the conditions of financial decentralization local budget can cooperation with IFIs [international financial institutions] themselves and implement similar projects,” Groysman said.
The prime minister recalled that the government supports projects to modernize public joint-stock company Ukrzaliznytsia, a pump-storage plant and hopes to agree on the energy efficiency and higher education projects.
The press service of the EIB said that the bank would its support through a modal shift from road to electric transport and more efficient operation of existing public transport systems in municipalities across Ukraine.
“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,” the bank said in a press release.
The project will contribute to the implementation of the National Urban Public Transport program 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 project 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 – European Bank for Reconstruction and Development (EBRD).
According to a press release of the Infrastructure Ministry spread at the signing ceremony, the up to 22 year financing will be guaranteed by the government. The grace period is up to five years.
The EIB will finance the project in 15 tranches during five years.
It is planned that the project will be implemented in Kyiv, Bila Tserkva, Ivano-Frankivsk, Kremenchuk, Lutsk, Lviv, Odesa, Sumy, Ternopil, Kharkiv and Chernihiv.
