EBRD starts financing procurement of 49 trolleybuses by Zhytomyr
The European Bank for Reconstruction and Development (EBRD) has started financing procurement of 49 trolleybuses made by Belkommunmash (Belarus) by the Zhytomyr Tram-Trolleybus Office, providing a senior loan of up to EUR 10 million, the bank said on Tuesday.
The loan consists of a loan of up to EUR 9 million from the EBRD ordinary capital resources and a loan of up to EUR 1 million from the Clean Technology Fund (the CTF) resources administered by the Bank's CIF Special Fund.
As reported, the EBRD in November 2018 signed the loan agreement with Zhytomyr Tram-Trolleybus Office under the Ukraine Public Transport Framework (UPTF) consisting of municipal-guaranteed loans to public transport companies in Ukraine to facilitate critical improvements in public transport infrastructure.
The total cost of the project for Zhytomyr is EUR 12 million. The loan is expected to be co-financed by an investment grant of up to EUR 2 million (grant) from the EU Neighbourhood Investment Platform (NIP).
The proceeds of the loan and the grant will be used to finance: the acquisition of new trolleybuses and related maintenance and diagnostic equipment, and the extension of the trolleybus network (construction of power substations and catenary network).
According to information on the website of the Zhytomyr City Council, in April 2019, the EBRD announced a tender for the procurement of 49 low-floor 12-meter trolleybuses with a set of spare parts and consumables won by Belkommunmash.
The trolleybuses are expected to be delivered during 2020. The amount of the contract with the winner was EUR 9.32 million (EUR 190,000 per trolleybus).
The EBRD said that the loan is the eighth sub-project under the UPTF.
The EBRD is the largest international financial investor in Ukraine. Since the beginning of its activity in the country in 1993, the bank has financed 445 projects for a total amount of almost EUR 14.6 billion.