The European Bank of Reconstruction and Development (EBRD) is supporting the modernisation of public transport in Ukraine with a loan of up to €13 million, which will be used to bring 72 low-floor trolleybuses to the city of Mariupol.
The loan will be fully secured by a municipal guarantee and complemented by a loan of up to €2 million from the Climate Investment Funds' Clean Technology Fund and a €3 million grant from the Eastern Europe Energy Efficiency and Environment Partnership (E5P), to which the European Union is the largest contributor.
Mariupol is the second-largest municipality in the Donetsk region in eastern Ukraine. Its population has grown by 20 per cent in recent years, due to the arrival of about 100,000 internally displaced persons, hence the need to improve the quality and efficiency of its municipal transport in response to growing demand.
The investments will reduce the upgraded trolleybus fleet’s electricity consumption by approximately 40 per cent, resulting in a reduction in air pollution, especially particulate matter including black carbon, CO2 and nitrous oxides. The project will support the city in reaching its emission reduction targets agreed under the EU’s Covenant of Mayors programme.
An additional €460,000 will be mobilised in technical assistance grants to support the project implementation and transform the company into a more commercial structure, including the development of a sustainable urban mobility plan. The funds will be provided by the EU’s Municipal Project Support Facility.
The EBRD is the largest international financial investor in Ukraine. Since the start of its operations in the country in 1993, the Bank has made a cumulative commitment of almost €12.1 billion across some 400 projects in Ukraine.
E5P, part of the EU4Energy Initiative, is a multi-donor fund, to which the EU is one of the biggest donors, targeted at municipal energy efficiency investments in the Eastern Partnership region.
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