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EBRD Supports Renewal of Public Transport in Ukraine

The EBRD is supporting the modernisation of public transport in Ukraine with a loan of up to €13 million for the acquisition of up to 72 low-floor trolleybuses for the city of Mariupol.

  • Senior EBRD loan of up to €13 million for up to 72 low-floor trolleybuses for Mariupol
  • €2 million loan from Clean Technology Fund and €3 million grant from E5P
  • Mariupol is the second-largest municipality in the Donetsk region in eastern Ukraine

The funds, provided to the communal enterprise Mariupolske Tramvaino-Troleybusne Upravlinnya (MTTU), will also finance spare parts and maintenance equipment as well as the modernisation of the existing trolleybus depot and the reconstruction of the catenary network.

The loan will be fully secured by a municipal guarantee and complemented by a loan of up to €2 million from the Climate Investment Funds’ Clean Technology Fund and a €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 the 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 per cent in recent years due to the arrival of about100,000 internally displaced persons.

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 per cent, 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 mobilise an additional €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 €12.1 billion across some 400 projects in Ukraine.