Release date: 14 January 2021
Promoter – Financial Intermediary
KYIV CITYLocation
Description
Project consists of investment in new trolleybuses and metro coaches.
Additionality and Impact
The project will target investments related to replacement of trolleybus, tram and metro fleets. It is eligible for the European Investment Bank's ("EIB") financing under its External Lending Mandate 2014-2020 and the 2014 European Union - Ukraine Association Agenda that support, among other, things, infrastructure and transport. The project also complies with the objectives and development priorities (such as urban public transport) of Ukraine's 2030 National Transport Strategy and the EIB's Transport Lending Policy.
The renewal of the city's trolleybus, tram and metro fleets is expected to improve their level of service in terms of reliability, safety and comfort. Therefore, the project should increase the attractiveness of public transport in Kyiv and promote a positive modal shift from private transport modes to public transport, thereby, reducing negative road transport externalities (air and noise pollution, greenhouse gas emissions, road accidents and congestion). Also, by promoting modal shift to more efficient public transport, the project will contribute to EIB's climate action commitment, as per EIB's Climate Bank Roadmap. Thus, as a 100% Climate Action project, it will be reported under the EIB's Public Policy Goals for Sustainable Cities.
Benefits stemming from the EIB financing include: long tenor of EIB loan, flexible draw-down conditions, as well as attractive pricing, which is important given socio-economic implications of the project. The EIB will also make a contribution through substantial technical appraisal and monitoring of the project by EIB staff and third party consulting services. The involvement of the EIB with the project has raised its technical, environmental and social standards.
Objectives
The investments financed under the operation will improve the quality and sustainability of public transport service in Kyiv and will have a positive effect on the local economy. The investment is expected to deliver socio-economic benefits and savings in terms of travel time, vehicle operating costs and road accident costs, as well as have a positive impact on the environment (decrease in local air/noise emissions and greenhouse gas emissions) as a result of the expected shift of passengers from private cars to sustainable public transport modes.
Comments
This operation is covered by the EU Guarantee for EIB loans outside the EU.
Sector(s)
- Transport - Transportation and storage
Under ELM Guarantee
This operation is covered by the ELM Guarantee.
Proposed EIB finance (Approximate amount)
EUR 100 million
Total cost (Approximate amount)
EUR 217 million
Environmental aspects
The purchase of new trolleybuses and metro coaches does not fall within the scope of either Annex I or Annex II of the EIA Directive 2011/92/EU as amended by Directive 2014/52/EU. Therefore, if the project were situated in the EU, no environmental impact assessment (EIA) would be required. The EIB will assess the arrangements for the scrapping of dismissed rolling stock in Ukraine and the storage of hazardous waste material. Overall, compliance with the Bank's Environmental and Social Standards will be assessed during appraisal.
Procurement
The Bank will require the Promoter to ensure that any procurement procedures are done in accordance with the Bank's Guide to Procurement and the relevant applicable EU public procurement rules.
Status
Signed - 10/12/2021
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).