Ukraine received over €46 million from the European Investment Bank to support urban development

Ukraine obtained EUR 46.1 million in loan funds from the European Investment Bank under four projects aimed at supporting urban development. The funds were transferred to the special fund of the State Budget.

In particular, EUR 13.3 million each was received under the Municipal Infrastructure Development Program and Ukraine Urban Public Transport projects, EUR 14.7 million under Ukraine Urban Public Transport II, and EUR 4.8 million under the Energy Efficiency in Public Buildings of Ukraine project.

The funds are directed toward the reconstruction of water supply and wastewater systems, the reclamation of the Hrybovychi landfill near Lviv, implementation of energy efficiency measures in public buildings, and the financing of public transport rolling stock purchases in Kyiv, Mykolaiv, Lviv, Zaporizhzhia, Uzhhorod, Ternopil, Kamianske, Dnipro, and Kremenchuk.

To date, the EIB has provided Ukraine with over EUR 168 million to achieve the objectives of these projects. The largest amount - EUR 121.1 million - has been allocated for the renewal of public transport rolling stock in Ukrainian cities.

These funds are provided to Ukraine as part of the European Union’s Ukraine Facility, which enables financing under the guarantees of the European Commission.

“The financing provided by the European Investment Bank helps Ukraine sustain urban development - particularly through upgrading public transport, improving energy efficiency, and implementing other important projects. This support is critically important, especially as the Government of Ukraine channels all domestic resources to meet the needs of the security and defense sector. We highly appreciate this assistance and look forward to continued fruitful cooperation, including expanding the use of EU guarantee mechanisms. This will allow for the implementation of even more projects essential for the country’s recovery,” noted Deputy Minister of Finance of Ukraine Olga Zykova.

The European Investment Bank is currently financing the restoration of critical infrastructure, including roads, railways, bridges, damaged energy facilities, medical institutions, and other social infrastructure. The EIB also supports long-term recovery projects, such as the reconstruction of destroyed public buildings and infrastructure.

At present, the EIB’s loan portfolio in Ukraine is among the largest of any international financial institution and consists of 27 projects with a total value of EUR 4.7 billion.