EU bank lends EUR 200m for upgrading of public transport infrastructure in 20 Ukraine municipalities
The European Investment Bank (EIB) is lending EUR 200m to the Ministry of Transport of Ukraine to support sustainable municipal transport through a modal shift from road to electric transport and more efficient operation of existing public transport systems in municipalities across Ukraine.
EIB Vice-President Vazil Hudák commented: “A higher level of customer service and sustainability of public transport in medium to large Ukrainian cities will increase citizens’ quality of life, improve the environment and increase energy savings, leading to higher economic output. I am glad that the EIB can contribute via strategic loans such as this one.”
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 the purchase of new or modernisation of existing rolling stock, e.g. trolleybuses, trams and buses, and the rehabilitation and construction of public transport infrastructure such as tram lines, bus lanes, stations and depots. It will target up to 20 municipalities and will comprise multiple investment schemes ranging in cost between EUR 1m and EUR 50m. The final beneficiaries will be municipally-owned transport utilities or municipalities themselves.
The investment costs of the schemes to be supported under this loan are expected to total some EUR 400m, of which EIB will co-finance up to 50%. The project will also be co-financed by a partner financing institution – the European Bank for Reconstruction and Development (EBRD).