Government and EIB ink agreements totaling € 640 million

Ukraine will receive € 640 million from the European Investment Bank for the socio-economic development of the eastern regions, the development of urban transport and the modernization of transport infrastructure. Relevant loan agreements were signed by the Government of Ukraine and the EIB on December 9.

According to Prime Minister Denys Shmyhal, these funds will help Ukraine develop its economy and sustainable society, particularly in the eastern regions of the country.

"Restored infrastructure facilities in eastern Ukraine, reconstruction and improvement of the road network in Luhansk region, sustainable public transport will provide economic, environmental and social benefits for the citizens of Ukraine for many years to come," noted the Prime Minister.

The Prime Minister thanked the European Investment Bank for the years of successful cooperation, for the support of Ukraine during the COVID-19 pandemic and the European Union for an additional grant to supplement the aforesaid loans.

According to EIB President Werner Hoyer, the implementation of these projects will benefit Ukrainians in urban and rural areas from modern, safe and fast road connections, as well as 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," said Werner Hoyer.

EIB Vice-President Teresa Czerwińska noted that due to three new loan agreements, the European Investment Bank reaffirms its commitment to support Ukraine's growth and development, as well as its transformation into an even better place to live and do business.

EU Ambassador to Ukraine Matti Maasikas noted that renovating infrastructure to have better schools, hospitals, community centers and housing had been a key component of the EU’s support for social and economic recovery in the conflict-affected east. According to him, EU investments will help local authorities in selected cities to improve public transport to provide quality transport services to citizens.

Signed by the Government of Ukraine and the European Investment Bank deals provide for the following:

• € 340 million loan to rehabilitate infrastructure and improve living conditions and doing business conditions in conflict-affected regions in eastern Ukraine. The project will contribute to economic recovery and regional development through the rehabilitation and modernization of infrastructure, including administrative school buildings, medical centers and hospitals, public roads and bridges, as well as utilities, water supply and sewerage in the Ukrainian-controlled territories of Donetsk and Luhansk regions. The project will also be implemented in Kharkiv, Dnipropetrovsk, Zaporizhia, Kherson regions, in the territories of city councils of other regions that receive internally displaced persons.

• € 200 million loan to improve the quality and reliability of public transport in up to 20 cities in Ukraine. This will help to modernize the rolling stock of electric public transport (trams, trolleybuses, subway cars and electric buses), to restore and build new public transport infrastructure (tram lines, trolleybus lanes, substations and depots). Currently, the projects are planned to be implemented in the following cities participating in the project: Severodonetsk, Vinnytsia, Uzhhorod, Cherkasy, Kremenchuk, Bila Tserkva, Melitopol, Kamyanske, Khmelnytsky, Ternopil, Kryvyy Rih, Dnipro, Lutsk, Zaporizhia, Lviv, Poltava, Odesa, Chernivtsi.

• € 100 million loan for the modernization of 183 km of the road network in Luhansk region. The funds will be directed for capital and current average repairs of sections of highways: Chuhuiv-Milove, Demino-Oleksandrivka-Svatove-Lysychansk-Luhansk, Taniushivka-Starobilsk-Bakhmut.

• Substantial grants from the European Union in the shape of technical assistance will supplement EIB loans and assist in project preparation and management processes.