EIB to provide €200m loan for Ukraine public transport infrastructure upgrade
14 November 2016 • Author(s): Katie Sadler, Digital Content Producer, Eurotransport
The European Investment Bank has announced a €200 million loan to support the upgrade of public transport infrastructure in 20 Ukraine municipalities.
The EIB has announced a €200 million loan to the Ministry of Transport of Ukraine to support sustainable municipal transport through a modal shift from road to electric transport. Furthermore, it will support greater efficient operation of existing public transport systems in municipalities across the country.
Loan will assist Ukraine’s National Urban Public Transport programme
The EIB funded project will contribute to the implementation of the National Urban Public Transport programme. The investment 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. The investment will be distributed across 20 municipalities aiding schemes ranging in cost between EUR €1 million and €50 million. According to the EIB, final beneficiaries will be municipally-owned transport utilities or municipalities themselves.
EIB Vice-President Vazil Hudák commented on the loan announcement: “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 total investment cost of the schemes is expected to total €400 million. The EIB will co-finance up to 50 percent of this amount. Moreover, the project will be co-financed by the European Bank for Reconstruction and Development (EBRD).