The European Investment Bank (EIB) will provide a EUR 160 million loan to Kharkiv to extend the Oleksiyivska subway line.

The bank said on its website that the decision was approved by the Board on September 19.

"The project will improve public transport in Kharkiv by extending the metro network, and making it more attractive for commuters. Consequently, it is expected that the investment will result in a modal shift away from private car use, thus reducing the negative impact of car transport on the environment," the bank said.

The European Bank for Reconstruction and Development (EBRD) will co-finance the project (EUR 160 million) in the form of the sovereign loan. The project is pending approval until November 15, 2017.

According to the materials, the feasibility study of the project was drawn up by Bernard Ingenieure ZT GmbH under a contract with the EBRD. The company attracted Tebodin Ukraine to due diligence of the project.

The loan would finance extension of the existing Green Line towards the airport by 3.47 km and construction of two new stations: Derzhavinska and Odeska, construction of a metro wagon depot for the Green Line; and procurement of 85 units of rolling stock.

Both stations and the section from the existing tunnels to the station Derzhavinska (959 meters long) are planned to be built in open cut technology, i.e. from the ground surface. For the section between stations Derzhavinska and Odeska (2,514 meters long) tunneling by means of a shielded Tunnel Boring Machine (TBM) is planned.

The City has identified 247 tenants registered in 45 houses that will be directly affected by the construction and operations of the extension.