📋 Tender Overview
Location: Ukraine
Project number: 55023
Business sector: Municipal and environmental infrastructure
Notice type: State
Environmental category: B
EBRD Finance Summary: EUR 25,000,000.00
Total Project Cost: EUR 35,000,000.00
Project Description
A senior loan of up to EUR 25 million, consisting of EUR 15 million committed ("Tranche 1") and EUR 10 million uncommitted financing ("Tranche 2"), to provide emergency support to the City of Kharkiv via liquidity financing to its municipal utilities/operators, to mitigate the effect of the ongoing war on the City's financial position, and to ensure uninterrupted provision of essential municipal services to the City's residents, internally displaced persons ("IDPs") and enterprises (the "Project").
The recipients of liquidity support from the City are planned to be the four municipal operators:
i) the Communal Enterprise "Kharkivsky metropoliten", an existing client of the Bank;
ii) the Communal Enterprise "Trolleybus depot no. 2", an existing client of the Bank;
iii) the Communal Enterprise "Saltiv tram depot"; and
iv) the Communal Enterprise "Kharkiv heat networks" (together the "Recipients").
Project Objectives
The Bank's loan is expected to support the key municipal utilities and public transport operators in 2024-2025 by addressing their critical liquidity needs, to ensure uninterrupted provision of essential public services in response to direct damage from the war, additional demand for services due to the presence of a significant number of IDPs and the City's shrinking liquidity.
In the absence of the Bank's support, given the on-going war and its effects on the local economy and ongoing forced displacement and labour market volatility, there is a high risk of disruption to infrastructure services provision, compromising infrastructure service delivery, which is needed both for Kharkiv's economic recovery and the City's private sector.
Transition Impact
ETI score: 70
The Project will contribute to the following Transition Impact qualities:
Primary - Inclusive - as with the Bank's project, the City will be able to continue providing critical public services as well as other emergency programmes to its residents.
Secondary - Resilient - as the Project will support the City and consequently its key municipal companies affected by the wider economic consequences of the war in Ukraine.
