Ukraine to borrow 200 mln euros from EIB for public transport upgrade

The Ukrainian government said Friday that it will borrow 200 million euros (about 218 million U.S. dollars) from the European Investment Bank (EIB) to upgrade the country's public transport infrastructure.

"This project is essentially important for the Ukrainian cities. It gives an opportunity to significantly upgrade the municipal transportation fleet, ranging from trams to trolleybuses," Ukrainian Prime Minister Volodymyr Groysman was quoted as saying by the government press service.

The loan, which will be distributed to Kiev in 15 disbursements within the next five years, will be used for renovating and replacing public transport in 20 cities and towns across Ukraine.

The project is aimed at improving public transit services in the East European country and reducing harmful emission by switching to electric transport.

The long-term credit, which has a repayment time of 22 years with a five-year grace period, will be serviced by the funds from regional budgets.

The renovation of the public transportation fleet is a pressing issue for Ukraine, where the share of outdated vehicles reaches nearly 80 percent, according to the estimates of local experts. Endi