EUR 50m loan to upgrade the country’s transport infrastructure and improve connectivity with the EU
EUR 10m grant agreement via the multi-donor fund E5P to support higher education, complementing a previous EUR 120m EIB loan
Memorandum of Understanding aimed at increasing the quality of vocational education and training
At the EU-Ukraine Association Council meeting held today in Brussels, the European Investment Bank (EIB) agreed with the Ukrainian Government on a series of new financing operations. The EU bank will lend EUR 50m to finance transport infrastructure improvements throughout the country. Ukraine and the EIB also signed a EUR 10m grant agreement under the multi-donor E5P fund that supports municipal investments in energy-efficiency and environmental projects in the Eastern Partnership countries. The grant will help finance the implementation of a Ukraine Higher Education Project, which the EIB is already supporting. Furthermore, the EIB concluded a Memorandum of Understanding with the Ukrainian Ministry of Education and Science for the preparation of a project to create several centres of excellence in the country.
EIB Vice-President Vazil Hudák commented:“Together with other EU institutions, the EIB is committed to improve the everyday life of Ukraine’s citizens. The projects signed today will result in faster and safer transport infrastructure, better academic facilities and more resources for higher education programmes, all of which will strengthen the country’s competitiveness”.
Prime Minister of Ukraine Volodymyr Groysman said: “Infrastructure development and large logistics projects are Government priorities for 2019. This is our advantage, and we will develop it. And also educational projects. The Government has been implementing an education reform for a year now, and we consider investment in human capital to be paramount.”
More information on the agreements
The EUR 50m EIB loan to improve connectivity in Ukraine and in the Eastern Neighbourhood provides support for transport projects expected to have significant positive local impacts. Road safety, connectivity, and traffic management and control projects are under consideration, with a view to contributing to the economic development of Ukraine.
The project’s first phase will focus on the development of intelligent transport system on national roads, the construction of a missing section of the northern by-pass around the city of Ternopil forming part of the extended TEN-T (Trans-European Transport Networks), and a number of multi-level railway crossings. Furthermore, the project will support the development of future investment in railway connections between the European Union and Ukraine. The project is backed by a EUR 14m EU grant for the Ternopil bypass investment and a EUR 1.85m EU grant for project preparation and implementation. Both grants are being provided under the Neighbourhood Investment Platform (NIP).
The EUR 10mE5P grant will be instrumental in implementing the Ukraine Higher Education Project that has already received a EUR 120m loan from the EIB and EUR 30m from Nordic Environment Finance Corporation (NEFCO). The grant will be used to finance, in particular, seven universities in the cities of Chernihiv, Kharkiv, Kyiv, Lviv, Poltava, Sumy and Vinnitsa in order to significantly reduce the energy consumption of their buildings with positive environmental impacts. The project is also supported by a EUR 3m EU grant from the Neighbourhood Investment Facility (NIF) to assist implementation arrangements.
The Ukraine Vocational Education and Training Project is expected to improve the quality of vocational education and training in Ukraine. The project promoter is the Ministry of Education and Science (MOES). With the signature of the Memorandum of Understanding, EIB and MOES have agreed to prepare a project that would focus on infrastructure investments to create several centres of excellence throughout Ukraine. The format and content will be developed in line with the reform agenda being prepared and implemented by the Government of Ukraine in this sector. An EIB loan to support the project is envisaged, subject to the approval of the Bank’s governing bodies.
The EIB has signed a EUR 240 million loan agreement with Gasunie, the public limited company that manages and maintains the infrastructure for large-scale transport and storage of gas in the Netherlands. The financing will be used for the construction of a nitrogen plant near the town of Zuidbroek, in the Province of Groningen.
The EIB has signed a EUR 250 million loan agreement with TenneT Holding B.V. The financing will be used for the western section of TenneT’s “Zuidwest 380 kV” project, which will enable the transmission of rapidly growing amounts of offshore wind energy to users in the Netherlands and beyond. In its entirety, the Zuidwest 380 kV project also supports increased connectivity of European electricity markets. Specifically, the EIB financing will support the construction of a new 380 kV transmission line – combined with a 150 kV line for part of the route - from the substation at Borssele to a new substation at Rilland.
The EIB has signed an EUR 18 million loan agreement with the Latvian national promotional institution ALTUM to finance energy efficiency projects by Latvian companies. The financing is complemented by a EUR 3 million guarantee under the “Private Finance for Energy Efficiency (PF4EE)” instrument, provided by the European Union under the LIFE programme (L’Instrument Financier pour l’Environnement). The signature was announced today at a bilateral meeting between EIB Vice-President Thomas Östros and Reinis Bērziņš, Chairman of ALTUM’s Management Board.