EBRD supports modernization of public transport in Ukraine

16:55, 06 July 2018
Economy
273 0
REUTERS

The funds, provided to the communal enterprise Mariupolske Tramvaino-Troleybusne Upravlinnya (MTTU), will also finance spare parts and maintenance equipment as well as the modernization of the existing trolleybus depot and the reconstruction of the catenary network, the EBRD said in a statement on July 6.

The loan will be fully secured by a municipal guarantee and complemented by a loan of up to EUR 2 million from the Clean Technology Fund and a EUR 3 million grant from the Eastern Europe Energy Efficiency and Environment Partnership (E5P), to which the European Union is the largest contributor.

The EBRD will support Mariupol, the second-largest municipality in Donetsk region in eastern Ukraine, in improving the quality and efficiency of its municipal transport in response to growing demand. The city's population has grown by 20% in recent years due to the arrival of about 100,000 internally displaced persons.

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The new fleet of trolleybuses will be used on the existing routes as well as connect a currently isolated district along the sea front (Morskoy Boulevard) to the existing trolleybus network and facilitate easier access for passengers with prams and those with limited mobility including the elderly and disabled travellers.

The Bank's investment will reduce the upgraded trolleybus fleet's electricity consumption by approximately 40%, 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 Covenant of Mayors programme.

The EBRD will mobilize an additional EUR 460,000 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 Municipal Project Support Facility.

The project is implemented under the Ukraine Public Transport Framework, approved by the EBRD in 2015. The facility helps replace ageing municipal transport with new environmentally friendly rolling stock.

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 EUR 12.1 billion across some 400 projects in Ukraine.

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