Ukraine: EIB supports the upgrade of municipal infrastructure with EUR 400 million
23 July 2015
The European Investment Bank (EIB) is lending EUR 400 million to finance public infrastructure projects in Ukraine’s medium and large municipalities focused on protecting, rehabilitating and avoiding deterioration of municipal infrastructure.
EIB funds will support some 25 to 40 projects fostering substantial improvements in energy efficiency - as district heating, energy efficiency in public buildings, municipal lighting and will contribute to Ukraine’s energy security, reduction of water losses, improvements of solid waste management services and of safety and quality of municipal services provided.
EIB Vice-President László Baranyay, responsible for lending operations in Ukraine, commented: “The current project is in line with the commitment of the EU Bank to support Ukraine and its people. Modern and reliable municipal infrastructure will contribute to the increase of the quality of life of people living in Ukrainian cities. It will help to save energy, provide better and more economical services and help to protect environment”.
The borrower of the EIB loan is Ukraine and the Ministry of Regional Development, Construction, Housing and Communal Services of Ukraine is the project promoter. The final beneficiaries will be central, regional or local government agencies, public utilities and municipalities providing public services in Ukraine.
The Bank’s loan will finance up to 50% of total costs of the investment programme. The remaining financing will be covered by parallel financing from other international financing institutions, investment grants and own funds of final beneficiaries.
In order to prepare and implement projects under the programme, the borrower and beneficiaries will benefit from technical assistance support funded by the Eastern Partnership Technical Assistance Trust Fund and Municipal Project Support Facility (MPSF) financed by the Neighbourhood Investment Facility (NIF).
The EIB loan operation signed today is secured by the EU comprehensive guarantee under the EIB’s 2014-2020 external lending mandate.
The EIB and the Government of Ukraine today signed three loans totalling €640 million to foster the sustainable growth of Ukraine and the prosperity of its people. The operations are in line with the priorities of the Government of Ukraine and the European Union to support the long-term social and economic development of eastern Ukraine and integration of the conflict-affected regions as well as the development of sustainable municipal transport and the modernisation of the transport infrastructure in the country.
The EIB and the Ministry of Communities and Territories Development of Ukraine signed a €300 million loan to improve the energy efficiency of some 1 000 public-owned buildings, including schools, cultural centres, kindergartens and hospitals. The loan was signed during the 22nd EU-Ukraine Summit to help the country limit the economic impact of COVID-19 by stimulating faster economic and social growth after the pandemic.
The EIB invested over €1 billion in Ukraine in 2020 alone, the year of the worst global health and economic crisis for generations, marking the second-highest investment volume in the history of the Bank’s activities in the country. This represents an increase of more than 50% compared to 2019. Total EIB investment in Ukraine has now reached €7.5 billion.