The European Union and the European Bank for Reconstruction and Development (EBRD) will provide emergency support for Lviv, the largest city in western Ukraine, to ensure the uninterrupted provision of vital services despite the impacts of the COVID-19 pandemic.
The EBRD is extending a €10 million loan to key municipal service providers and is prepared to lend another €12 million to meet the needs of the city, a longstanding client. The EU is backing the loan with a first-loss guarantee under the European Fund for Sustainable Development (EFSD), a guarantee facility to support sustainable investments in the EU neighborhood.
The joint support will meet the liquidity and working capital needs of the transport company Lvivelectrotrans, the road construction, maintenance, and traffic-management enterprise Lvivavtodor, the water operator Lvivvodokanal, the district heating company Lvivteploenergo and the waste management operator Zelene Misto. It will compensate for temporary loss of revenue due to the health crisis and will cover day-to-day operations.
To date, the EBRD has provided almost €140 million to the city of Lviv to help develop its transport infrastructure, improve water supply and waste management, and support road building and district heating. It has also financed a modern retail and entertainment center, creating jobs and attracting more investment.
