European Investment Bank lends Ukraine 400 mln euro for municipal infrastructure restoration, development

The European Investment Bank (EIB) has agreed a loan of 400 million euros for Ukraine for financing projects aimed at maintenance and recuperation of local utilities infrastructure in large and medium sized cities, the Ukrainian Regional Development, Construction, Housing and Utilities Services Ministry reported.

The European Investment Bank (EIB) has agreed a loan of 400 million euros for Ukraine for financing projects aimed at maintenance and recuperation of local utilities infrastructure in large and medium sized cities, the Ukrainian Regional Development, Construction, Housing and Utilities Services Ministry reported.

Ukrainian Deputy for Minister Regional Development, Construction, Housing and Utilities Services Hennadiy Zubko and EIB Vice President Laszlo Baranyay signed an agreement for financing the program of development of municipal infrastructure of Ukraine, the ministry's press service said.

"The EIB offered Ukraine some unprecedented conditions for raising the cheapest and 'longest' money, which is quite significant in the context of the limited governmental financing opportunities. Implementation of this agreement makes it possible for us to change quality of services rendered to our people and modernize outdated utilities infrastructure," Zubko said.

The total repayment period for the loan granted under projects on modernization of energy supply systems, will be 22 years, and for the loan granted under projects on modernization of water supply systems, 30 years, he said. The interest rate will be equal to 2%.

On May 19, the EIB board decided to lend Ukraine 400 million euros as a framework loan for restoration and development of municipal infrastructure. The project is designed to extend the lifetime of local infrastructure that is critical for energy supply, water supply and sewage. The project is also aimed at minimizing losses, decreasing pollution, as well as reaching higher energy efficiency level.

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