EU-Backed €16.5 Million Investment to Revitalize Public Transport in Ukraine’s Key Cities

(IN BRIEF) The European Investment Bank (EIB) has provided €16.5 million in EU-backed funding to modernize public transport systems in Kyiv, Mykolaiv, Ivano-Frankivsk, and Odesa. Part of the EIB’s Ukraine Solidarity Urgent Response package, this investment will supply new buses, dual trolleybuses, and trams to improve urban mobility, meet increased demand from displaced populations, and enhance sustainability. The initiative, supported by EU technical assistance, is part of a larger €200 million Ukraine Urban Public Transport project aimed at aligning the country’s transport systems with EU standards while aiding recovery and resilience during the ongoing conflict.

(PRESS RELEASE) LUXEMBOURG, 20-Dec-2024 — /EuropaWire/ — The European Investment Bank (EIB) has allocated €16.5 million in EU-supported funding to renew urban public transport systems in Kyiv, Mykolaiv, Ivano-Frankivsk, and Odesa. This initiative, part of the EIB’s Ukraine Solidarity Urgent Response package, reflects the EU’s ongoing commitment to aiding Ukraine’s infrastructure recovery amid the ongoing conflict. Since 2022, the EIB has delivered over €2 billion in financial support to Ukraine under this program.

This latest tranche, which builds on an earlier €17.25 million transport investment, will finance the procurement of modern buses, dual trolleybuses, and trams, along with essential spare parts and maintenance tools. Manufactured by a Turkish company and a German/Ukrainian consortium, these vehicles are designed to provide reliable, eco-friendly, and accessible public transportation for local residents and businesses.

The war has displaced millions of Ukrainians, and cities like Kyiv, Mykolaiv, Ivano-Frankivsk, and Odesa have experienced significant increases in population due to the influx of internally displaced persons. This investment will strengthen their ability to meet heightened transportation demands, enhance urban mobility, and contribute to resilient and sustainable city infrastructure.

EIB Vice-President Teresa Czerwińska highlighted the importance of the initiative: “Ukrainian cities face enormous challenges due to the ongoing war, including damaged infrastructure and growing demands for services. By supporting the renewal of public transport in Kyiv, Mykolaiv, Ivano-Frankivsk, and Odesa, the EIB is helping these cities adapt, recover, and build resilience while ensuring sustainable mobility solutions for their residents.”

European Commissioner Valdis Dombrovskis emphasized the broader context of the investment: “This €16.5 million funding is a vital step toward rebuilding and modernizing Ukraine’s urban transport systems, which are essential for the daily lives of its people. It also plays a crucial role in the country’s long-term recovery and reconstruction efforts, showcasing the EU’s steadfast political and economic support for Ukraine.”

Ukraine’s Deputy Prime Minister for Restoration, Oleksii Kuleba, praised the project’s impact: “The destruction of our transport systems due to Russian aggression has been severe, but this funding allows us to not only replace what was lost but also introduce reliable and modern vehicles that will better serve our communities. This partnership with the EIB exemplifies how we are rebuilding stronger and more resilient.”

Finance Minister Sergii Marchenko echoed these sentiments, stating: “The EIB’s investment is a cornerstone in revitalizing urban mobility in Kyiv, Mykolaiv, Ivano-Frankivsk, and Odesa. This funding will enhance transport systems, improve daily life for residents, and support the economic recovery of these cities. We deeply value the unwavering support of the EU and the EIB in these challenging times.”

This funding is part of the larger Ukraine Urban Public Transport project, which includes a €200 million loan from the EIB and €3.5 million in EU technical assistance. The initiative aims to modernize urban mobility in ten Ukrainian cities, aligning public transport with EU standards.

Despite ongoing challenges, cities across Ukraine are demonstrating progress and resilience. Lviv has added ten new trams, Lutsk has deployed 27 low-floor trolleybuses, and cities like Kyiv, Sumy, and Kharkiv have introduced modern vehicles to their fleets. These efforts underscore the commitment of Ukrainian cities to rebuild and advance, ensuring sustainable urban mobility even during wartime.

Background information

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives.

EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner of the Global Gateway. We aim to support €100 billion of investment by the end of 2027, around one-third of the overall target of this EU initiative. With Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society. EIB Global brings the Group closer to people, companies and institutions through our offices around the world.

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SOURCE: European Investment Bank