Regions to favour from a EUR 400 mn loan extended by the EIB for the development of housing and communal enterprises

On February 3, the Parliament ratified an Agreement between Ukraine and the European Investment Bank (EIB) to raise EUR400 million for the modernization of housing and communal services in the regions.

The funding shall be used for regional projects to restore urban infrastructure, improve energy efficiency of municipal enterprises, raise the quality of services in medium and large cities of Ukraine.

"The implementation of the Agreement will allow to improve energy efficiency and reduce local budget expenditures on heating of schools, kindergartens, hospitals, to replace street lighting in the cities, to pay due attention to environmental issues, recycling of household waste, to reconstruct the water main, upgrade the heating system and the like. These measures that will affect the life of each Ukrainian citizen will make our homes warmer, streets safer, and water quality better," said Vice Prime Minister/Minister of Regional Development, Construction, Housing and Utilities of Ukraine Hennadii Zubko.

Now the Ministry of Regional Development jointly with the European Investment Bank is studying the needs of local communities and collects all the necessary information from potential participating cities, so that by the end of year to launch implementation of the projects. "I call on all city mayors to take an active position on this issue, we expect from you suggestions on the introduction of such projects in your cities", stressed Hennadii Zubko.

The investment programme with the EIB provides unprecedented terms for attracting "cheap and long money". The maturity period on lighting and the treatment of household waste projects is 15 years, for the modernization of heat supply - up to 22 years, for modernization of water supply projects – up to 30 years. Moreover, a grace period will be up to 8 years.

As reported, on 23 July 2015, Vice Prime Minister/ Minister of Regional Development, Construction, Housing and Utilities of Ukraine Hennadii Zubko and Vice-President of the EIB László Baranyay signed a financial Agreement between Ukraine and the European Investment Bank for financing the program of development of municipal infrastructure of Ukraine to the tune of EUR 400 million.