The European Investment Bank (EIB) is lending EUR 200 million to the Ministry of Transport of Ukraine to support sustainable municipal transport infrastructure in 20 Ukraine’s municipalities.
The bank would its support through a modal shift from road to electric transport and more efficient operation of existing public transport systems in municipalities across Ukraine.
“A higher customer service level and sustainability of public transport in medium-to-large Ukrainian cities will increase the quality of life of citizens, improve environment and increase energy savings, leading to a higher economic output,” the bank said in a press release.
The project will contribute to the implementation of the National Urban Public Transport programme promoted by the government of Ukraine. It covers municipal schemes involving purchase of new or modernization of existing rolling stock, e.g. trolleybuses, trams and buses, rehabilitation and construction of public transport infrastructure as tram lines, bus lanes, stations, depots.
The project will target up to twenty municipalities and will comprise multiple investment schemes varying from EUR 1 million – EUR 50 million. The final beneficiaries will be municipally-owned transport utilities or municipalities themselves.
The schemes to be supported under this loan are supposed to amount to total investment costs of some EUR 400 million, out of which EIB will co-finance up to 50%. The project will be also co-financed by a partner financing institution – European Bank for Reconstruction and Development (EBRD).
