The New Agreement with the EIB will Ensure the Development of Public Electric Transport in Ukrainian Cities
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On December 9, the Government of Ukraine and the European Investment Bank (EIB) signed an agreement "Urban Public Transport II" on attracting loans for the development of public transport in the cities of Ukraine.
The credit line is totaling EUR 200 million. These funds will be used to purchase the new rolling stock of urban public electric transport for medium and large cities, as well as for the rehabilitation and development of electric transport infrastructure.
The signed agreement is a continuation of the project "Urban Public Transport of Ukraine" jointly with the EIB and the EBRD, which has been implemented since May 2017 in the cities of Kyiv, Kharkiv, Lviv, Ternopil, Lutsk, Sumy, Zaporizhzhia, Odesa, Mykolaiv, Ivano-Frankivsk, and Chernihiv.
EIB loan funds for the project implementation are an opportunity for Ukrainian cities to attract resources for the purchase of new modern trams, trolleybuses, subway cars, electric buses, as well as to expand the electric transport network and launch new routes.
"This project allows both increasing the mobility of citizens and improving the environmental situation in cities. World experience has shown that the development of public transport is the best tool for solving the problems of constant traffic jams and the daily loss of time by our citizens. Therefore, this project provides an opportunity to improve the quality of public transport and the level of mobility of residents of Ukrainian cities. It is important that the emphasis on environmentally friendly public transport is fully in line with modern European approaches. It is especially pleasant that this project also opens the possibility of launching public electric transport even in those cities where it was not present at all before,"- Deputy Minister of Finance Oleksandr Kava said.
The Ministry of Finance offers interested city managers to join the project.
The loan is granted for up to 22 years (from 2021 to 2042) with a grace period of 5 years. The rate on EIB loans can be floating (EURIBOR + margin up to 1%) or fixed (currently up to 1%).
The Ministry of Finance is continuing its systematic work on cooperation with international financial organizations to enable the implementation of socially important projects by responsible executors.