The European Bank for Reconstruction and Development (EBRD) has agreed to provide a €160m sovereign loan to the Ukrainian city of Kharkiv for the extension of its metro network.
The 18-year EBRD loan will be used to build two stations at Derzhavynska and Odeska, as well as a new metro depot.
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It will also be used to acquire new rolling stock for deployment along the network.
The metro line will be extended by roughly 3.5km under the initiative in order to reduce traffic congestion in the southern part of the city.
In addition to the agreed EBRD funding, Kharkiv is expected to receive a loan of an equal amount from EIB.
EBRD Eastern Europe and the Caucasus managing director Francis Malige said: “Our objective is to support the development of clean, efficient and modern urban transport in Ukraine.
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By GlobalData“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.”
The extension is set to offer a rail connection to the newly built residential areas within the city to provide an eco-friendly transportation alternative for commuters.
The project secured the EBRD financing via an open tender process after fulfilling all the financial institution’s procurement policies and rules.
A feasibility study related to the development is expected to be supported the Government of Japan through a financial grant.
