The European Investment bank (EIB) has provided a 400 euro million loan to Ukraine to finance the infrastructure projects of Ukrainian large and medium cities and towns on rehabilitating and upgrading municipal infrastructure, the press service of the Regional Development, Construction, Housing and Utilities Economy Ministry of Ukraine has reported.
The financial agreement between Ukraine and the EIB to finance Ukraine Municipal Infrastructure Project was signed by Deputy Prime Minister and Regional Development, Construction, Housing and Utilities Economy Minister Hennadiy Zubko and EIB Vice-President Laszlo Baranyay.
“EIB has provided the unprecedented conditions for raising the cheapest and longest money to Ukraine, which is very important in the conditions of restricted budget possibilities. Thanks to the realization of the agreement we can change the quality of services provided to households and modernize the overage infrastructure of the housing and utilities economy,” Zubko said.
He said that the general term of paying the loan under heating supply modernization projects is 22 years, and for water supply modernization projects – 30 years. The credit rate is 2 percent.
“This is an investment program on upgrading heating and water supplies, the implementation of which will be coordinated by the Regional Development, Construction, Housing and Utilities Economy Ministry. The program envisages the realization of projects in medium and large cities on rehabilitating and upgrading of urban infrastructure. Along with the replacement of equipment, the networks, 80 percent of which are in a catastrophic state, will be modernized,” Zubko said.
He said that the credit funds will be allocated to increase energy efficiency of centralized heating supply and the heating efficiency of public buildings and city lighting. Projects on water supply, sewage and waste recycling will also be realized.
“The realization of the projects would for allow restoring the overage municipal infrastructure, cut the production cost, increase comfort and quality of the living conditions of Ukrainian and improve the ecological state of cities,” he said.
Zubko said that end recipients of the funds are central, regional or local authorities, utilities and municipal companies that provide utilities services in Ukraine.
Baranyay said this project is being realized in line with liabilities of the EU bank to support Ukraine and its people. He said that modern and reliable municipal infrastructure will help to increase the quality of lives of people who are living in cities and towns of Ukraine. This would help to save energy and provide for better and more efficient services, as well as helping to protect the environment, he said.
