EBRD lends €38 million to western Ukrainian city of Lviv

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16 July 2009

Financing programme for road rehabilitation and transport system upgrades

The European Bank for Reconstruction and Development is providing a financing programme worth €38 million to the major western Ukrainian city of Lviv to help fund the modernisation of its road and transportation systems.

The largest municipal financing package provided by the Bank in western Ukraine to date will include a €12 million loan to Lviv ElectroTrans, the municipal transport company. It will also comprise a €26 million loan to Lviv Avtodor, the road construction, maintenance and traffic management company being created by the city of Lviv.

The financing programme will focus on the rehabilitation of tram tracks, streets and relevant infrastructure along the two most heavily used traffic routes in Lviv as well as the acquisition of rolling stock. It will also facilitate the implementation of traffic management systems, the modernisation of tram infrastructure and depots. In addition, the project will facilitate the introduction of electronic ticketing system and parking strategies to the city.
Through this project, the Bank is demonstrating its continued commitment to support Ukraine’s municipal and environmental infrastructure sectors. The EBRD has already made investments of nearly €190 million to date in water, district heating and municipal transport across the whole country.
Jean-Patrick Marquet, the EBRD Director for Municipal & Environmental Infrastructure, said: “This programme will enable Lviv ElectroTrans to offer the people of Lviv more competitive and better quality municipal transport services. A better and more reliable road infrastructure will also help Lviv’s bid to host the Euro 2012 football championship”.

“Today we are building up a confiding relationship with one of the most respected European financial institutions - the EBRD. I am sure these are the signs of powerful and quality cooperation, which will be based on trust and aspiration to development” said Lviv city mayor Andriy Sadovyi.

Technical Cooperation support for this project has been provided by the governments of Austria and Canada, the European Commission, through its Neighbourhood Investment Fund, and by the EBRD’s Shareholder Special Fund.

The European Bank for Reconstruction and Development is the biggest financial investor in Ukraine. As of 1 July 2009, it had committed €4.3 billion through 179 projects.

News Source : EBRD lends €38 million to western Ukrainian city of Lviv