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EIB supports the upgrade of municipal infrastructure in Ukraine with EUR 400 million

2015-09-23 00:00:00

The European Investment Bank (EIB)is giving a loan of€ 400 million Euros to the Ukranian government for the purpose of financing public infrastructures in the country’s medium and large cities. The aim of the loan is to protect , rehabilitate and avoid further deterioration of urban infstructural facilities.

The EIB funds will go into supporting about 25 to 40 projects which are engage in the promotion of significant improvements in the energy efficiency, district heating, energy efficiency in public buildings,district heating municipal lighting and that will alsocontribute to Ukraine’s energy security, engage in reduction of water losses, improvements of solid waste management services and of safety and quality of municipal services provided.€
EIB Vice-President László Baranyay, responsible for lending operations in Ukraine, commented: “The current project is in line with the commitment of the EU Bank to support Ukraine and its people. Modern and reliable municipal infrastructure will contribute to the increase of the quality of life of people living in Ukrainian cities. It will help to save energy, provide better and more economical services and help to protect environment”.

The borrower of the EIB loan is Ukraine and the Ministry of Regional Development, Construction, Housing and Communal Services of Ukraine is the project promoter. The final beneficiaries will be central, regional or local government agencies, public utilities and municipalities providing public services in Ukraine.

The Bank’s loan will finance up to 50% of total costs of the investment programme. The remaining financing will be covered by parallel financing from other international financing institutions, investment grants and own funds of final beneficiaries.

In order to prepare and implement projects under the programme, the borrower and beneficiaries will benefit from technical assistance, support funded by the Eastern Partnership Technical Assistance Trust Fund and Municipal Project Support Facility (MPSF) financed by the Neighbourhood Investment Facility (NIF).

The EIB loan operation signed today is secured by the EU comprehensive guarantee under the EIB’s 2014-2020 external lending mandate.