EIB invests €640m in Ukrainian infrastructure
By Leila Steed09 December 2020
The European Investment Bank (EIB) and the Government of Ukraine have signed three loan agreements worth a total of €640 million, in order to improve the country’s infrastructure.
The EIB said that the funds would be used for the sustainable growth of the Ukraine and its people, and that it would help support the social and economic development of the country’s conflict-affected eastern region.
EIB President, Werner Hoyer, said, “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 183 km of roads in eastern Ukraine’s Luhansk Region.”
A loan agreement worth €340 million will be put towards improving living and business conditions. It will see the financing of several hundred small to medium-sized projects that are aiming to improve public utilities and facilities such as hospitals, schools and transport services and for around 13.7 million people. This will include support for people who have been displaced by conflict in the Donetsk and Luhansk regions, as well as other areas.
The second loan, valued at €200 million, will enable the Ukraine’s Ministry of Infrastructure to improve transport links between the country’s eastern cities and the rest of the Ukraine. It will include the promotion of environmentally friendly vehicles and will improve and promote public transport services, in order to help reduce congestion. The EIB loan also comes with up to €4 million in grants from the EU’s Neighbourhood Investment Platform for technical assistance during the project’s implementation, and an additional €490 000 from the Eastern Partnership Technical Assistance Trust Fund for project preparation.
A further loan agreement of €100 million will be used to reduce travel times and improve road safety in Luhansk Oblast.
Hoyer said, “This means 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.”