EBRD supports innovation at Ukraine’s Nova Poshta

EBRD supports innovation at Ukraine’s Nova Poshta

The FINANCIAL -- The EBRD is supporting innovation for the improvement of the postal logistics infrastructure in Ukraine by providing a 7-year loan of up to €9.5 million to Nova Poshta LLC, the country’s largest privately owned postal company with 2,300 branches across Ukraine.

This is one of the first multi-currency loans provided by the EBRD to local corporates in Ukraine, with disbursements available both in euro and Ukrainian hryvnia, according to the EBRD.

The project will support:

The construction of a new, automated parcel sorting terminal in the city of Khmelnytskyi, western Ukraine;

The Introduction of new, automated parcel sorting technology by the end of 2019 (supported by the EBRD’s Finance and Technology Transfer Centre for Climate Change (FINTECC) programme);

The improvement of fleet utilisation by 25 per cent on inter-city routes by the end of 2020;

The reduction of annual CO2 emissions by 1,570 tonnes by the end of 2020

The investment will benefit from a US$ 225,000 incentive grant provided through FINTECC designed to transfer technology in the area of climate change mitigation and adaptation, which was launched in Ukraine in February 2016. The three-year FINTECC programme is supported by US$ 7 million grant funding from the Global Environment Facility (GEF) and a €4 million grant from the EU’s Neighbourhood Investment Facility (NIF).

The EBRD is the largest international financial investor in Ukraine. To date, the Bank has made a cumulative commitment of almost €12.1 billion across some 400 projects since the start of its operations in the country in 1993.