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The European Investment Bank (EIB) and the Government of Ukraine today signed three loans totalling 640 million to foster the sustainable growth of Ukraine and the prosperity of its people. The operations are in line with the priorities of the Government of Ukraine and the European Union to support the long-term social and economic development of eastern Ukraine and integration of the conflict-affected regions as well as the development of sustainable municipal transport and the modernisation of the transport infrastructure in the country.

EIB President Werner Hoyer said:The EIB is proud of our continuing contribution to the social and economic development of Ukraine in support of European Union policy in the country. Today, we are investing 640 million to overhaul and modernise infrastructure in conflict-affected eastern Ukraine, to improve the quality and reliability of public transport in up to 20 cities in the country, and to modernise 183km of roads in eastern Ukraines Luhansk Region. Thismeans the people of Ukraine will benefit from modern, safe and fast connections and the new business opportunities they bring. Refurbished schools, hospitals and public services will also help the country to recover faster from the pandemic and to increase its economic resilience. Together with our fellow EU institutions, the EIB looks forward to supporting Ukraine with projects like these and helping the country grow and develop faster and more sustainably as it progresses towards the EU.

EIB Vice-President Teresa Czerwiska, who is responsible for operations in Ukraine, added:With the projects signed today on infrastructure rehabilitation, better public transport and improved roads, the European Investment Bank reaffirms its commitment to helping Ukraine grow, develop and become an ever better place for living and doing business. Our support will reach parts of Ukraine affected by the armed conflicts, and assist in their recovery. Rehabilitated schools, hospitals, kindergartens and other public buildings in eastern Ukraine, as well as improved roads in the Luhansk region, will make life easier for 13.7 million people, help boost economic growth, connect people and increase trade. Ukraine will also benefit from modern, efficient and green public transport, which is key to successful climate action, increasing the countrys contribution to global climate action. As the EU bank, we are happy to support the Government of Ukraine, and directly translate the EU-Ukraine partnership into concrete investments.

The Ambassador of the European Union to Ukraine Matti Maasikas said: The European Union is proud to continue investing, together with the EIB, into two key areas support for conflict-affected regions of eastern Ukraine and sustainable, green infrastructure. Renovating infrastructure to have better schools, hospitals, community centres and housing has been a key component of the EUs support for social and economic recovery in the conflict-affected east. Improved and modern infrastructure is a major investment in the future of communities in eastern Ukraine. Road rehabilitation projects in the Luhansk region will have a direct impact on the economic and social recovery in eastern Ukraine. High-quality roads will bring tangible benefits to people, improving transportation links in the region and boosting the development of the agricultural sector. Urban mobility and sustainable, green public transport are high on the agenda of the European Union and among the priorities of Ukraines National Transport Strategy. By promoting a shift to more efficient and more environmentally friendly public transport, our investments will help local governments in selected cities to upgrade public transport and provide quality transport services to citizens.

The Prime Minister of Ukraine Denys Shmyhal remarked:I would like to sincerely thank the European Investment Bank for years of successful cooperation, for supporting Ukraine during its most volatile times, and the European Union for the complementary grant towards these operations. The loans signed today and the EU-funded technical assistance will help Ukraine to develop economy and resilient society, including in the regions most affected by the conflict. Restored infrastructure facilities in Eastern Ukraine, reconstruction and advancement of roads in Luhansk Oblast, and sustainable public transport will offer economic, environmental and social benefits for Ukrainians for many years to come. We are grateful to the European Union for its continued support, which has not faltered, but rather intensified during the coronavirus crisis. We are proud that Ukraine and the EU are moving forward together in these difficult times.

340million to boost infrastructure resilience in Ukraine

The 340million loan will support infrastructure rehabilitation and improve living and business conditions in conflict-affected regions of eastern Ukraine including oblasts that host a significant number of internally displaced persons (IDPs). Several hundred small to medium-sized projects will be financed at the municipal level to restore social infrastructure, improve public utility services and repair damaged administrative buildings and other key social infrastructure, including hospitals, schools, kindergartens, post offices, street lighting, sewerage systems, municipal transport and relevant transport infrastructure. The loan will benefit some 13.7million people, boost regional development and promote faster economic growth in Ukraine.

Under the 340million loan, the Ukrainian-controlled areas in the Donetsk and Luhansk regions, as well as the neighbouring Kharkiv, Dnipropetrovsk, Kherson and Zaporizhia regions and city councils in other regions of Ukraine that are accommodating significant influxes of internally displaced persons (IDPs) will receive hands-on support to mitigate the effects of the conflict.

This operation follows theUkraine Early Recovery Programme,a 200million long-term investment in critical infrastructure facilities that supported 246 local and small-scale projects. From 2014 to 2020, the programme improved living conditions for more than 5.4million residents of Ukraine, including nearly 700000 IDPs and other vulnerable social groups.

15.2million in EU grants will support the EIB loan with technical assistance in project preparation and management.In particular, a 7million grant from the EU Neighbourhood Investment Platform (NIP) will support the programmes preparation and implementation. An additional 8.2million grant from the EU Delegation to Ukraine will support advocacy, help raise awareness among final beneficiaries, and assist them in preparing tenders and monitoring construction works, etc.

200 million to improve public transport for Ukraine

Up to 20 medium-sized and large cities in Ukraine will improve public transport as the EIB loans 200 million to the Ministry of Infrastructure. The loan from the EU bank will improve the connection between the cities in the region of Azov Sea in eastern Ukraine with the rest of the country, increasing the standard of living for some 10 million people.

Benefiting from the loan, Ukrainian cities will modernise their electric public transport rolling stock (trams, trolleybuses, metro coaches and electric buses), rehabilitate and construct new public transport infrastructure (e.g. tram lines, trolleybus lanes, sub-stations and depots). Safer, more comfortable and environmentally friendly vehicles will improve the service level and increase the attractiveness of public transport.The operation will also help reduce congestion and promote public transport as an effective and comfortable alternative for commuters.

The EIB loan comes with up to 4 million in grants for technical assistance in project implementation from the EUs Neighbourhood Investment Platform (NIP). In addition, the Eastern Partnership Technical Assistance Trust Fund (EPTATF) will grant 490000 to support project preparation in the early development stages.

100 million to improve road connections in eastern Ukraine

The EIB is investing 100 million to modernise 183km of roads in eastern Ukraines Luhansk Region. Citizens and businesses in the region will benefit from a modern road network along the Troitske-Severodonetsk-Starobilsk route.

Investment from the EU bank will improve connections with eastern Ukraines Luhansk Oblast, home to some 2 million people. The people of Ukraine will benefit from reduced travelling times and vehicle maintenance costs, and improved road safety. The World Bank will provide $100 million in a parallel financingloanto support the Eastern Ukraine: Reconnect, Recover, Revitalize (3R) project.

The EIB will finance the rebuilding of road infrastructure, installation of intelligent transportation system (ITS) equipment, such as weigh-in-motion stations, and investment in other road safety measures. Investment will also enhance conditions for living and doing business in eastern Ukraine by better integrating the regional agriculture sector into the national supply chain.

SOURCE: EIB

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Ukraine: The EIB invests 640 million to improve infrastructure resilience, public transport and road connections - Automotive World