The Cabinet of Ministers of Ukraine has approved a project on the construction of the section of the Kurenivsko-Chervonoarmiyska line of the Kyiv subway from the Vystavkovy Tsentr station to Odeska Square in the Holosiyivsky District and approved the conditions for granting government guarantees in 2013 to borrow funds for its realization.
According to cabinet resolution No. 728 of Oct. 9, 2013, the construction length of the section in the two-gauge dimension is 2.92 kilometers. The total projected cost as of Sep. 1, 2013 was Hr 1.817 billion, including Hr 816.267 million from the national budget, Hr 501.33 million from the local budget and Hr 500 million of loans (including those taken with government guarantees).
The document empowers the transport infrastructure department of Kyiv City Administration to raise loans in the sum not exceeding Hr 500 million with government guarantees. The funds can be borrowed if the efficient credit rate does not exceed 10 percent per annum, and the term of the loans cannot exceed 60 months.
Expenses on paying back and servicing the loan will be taken from the funds of municipal enterprise Kyiv Metropoliten, which will be taken into account in the tariff for carrying passengers. The executor of the project is Kyiv Metropoliten.
The fee for granting government guarantees is 0.001 percent per annum from the remainder of the secured sum.
