The FINANCIAL -- The EBRD is providing a €160 million sovereign loan to Kharkiv, Ukraine’s second largest city, for the extension of its metro network. The 18-year loan will finance the construction of two new metro stations, a depot and the acquisition of new rolling stock. The EBRD financing will be complemented by a loan of equal size from the EIB.
Kharkiv in north-eastern Ukraine has almost 1.5 million inhabitants and is a major industrial centre. It houses large machinery and electronics industries and is also a centre of culture and science with a university founded in 1804.
The 3.5-kilometre metro line extension and the construction of the new Derzhavynska and Odeska metro stations will provide much-needed relief from traffic congestion in the city’s south and help rejuvenate a residential area with approximately 160,000 inhabitants, according to the EBRD.
The local population and visitors alike will also benefit from better, faster and greener transport links between the city centre and the airport. The extended metro line will also reach newly-built residential areas of Kharkiv and provide better public mobility in one of Ukraine’s major industrial centres.
All contracts under the project financed by the EBRD will be procured by open tender in strict compliance with the EBRD's Procurement Policies and Rules. This will provide equal opportunities for eligible bidders and contribute to the transparency and cost efficiency of the metro expansion programme.
Francis Malige, EBRD Managing Director for Eastern Europe and the Caucasus, said: “Our objective is to support the development of clean, efficient and modern urban transport in Ukraine. The Kharkiv metro project is a perfect fit for this strategy. By promoting sustainable and clean urban transport as an attractive alternative to car travel, we are bringing a range of environmental and economic benefits as well as saving travel time and reducing carbon emissions.”
A feasibility study for the project was supported by grant funding provided by the government of Japan.
The EBRD is the largest international financial investor in Ukraine. To date, the Bank has made a cumulative commitment of almost €11.6 billion through 383 projects since the start of its operations in the country in 1993.