European Investment Bank to Invest One Billion Euro Into Ukraine's Infrastructure and Energy Projects

Mar 29, 2011, 14:03 ET from Worldwide News Ukraine

KYIV, Ukraine, March 29, 2011 /PRNewswire/ -- The European Investment Bank (EIB) opened its Resident Representation in Ukraine, the first EIB representation in the region of the Eastern Partner Countries. "So far we have nine investment projects at different stages of completion. These projects involve development of infrastructure, energy efficiency, and pipelines in Ukraine," announced the EIB Vice President Eva Srejber at the opening ceremony, according to Ukrainian News Agency.

Eva Srejber highlighted that loans for projects under appraisal or pending contract negotiations are worth over one billion euros. "The main task of the EIB Resident Representation in Kyiv is to strengthen relations with Ukraine by supporting EU policy and to extend loans to projects of common interest. It will work towards further developing contacts with Ukraine's government, regions and municipalities and strengthen relations with public promoters, partner banks and other IFIs as well as representatives of the private sector," commented Eva Srejber.

Cooperation between Ukraine and the bank has been going on for five years. Since 2005, the bank has provided Ukraine with loans totaling EUR 465.5 million in the roads and energy sectors, the upgrading of water infrastructure and - indirectly through commercial banks - the projects of SMEs, according to the Web site of the EIB. This year Ukraine hopes to strengthen the cooperation by signing a number of international agreements aimed at implementation of large-scale infrastructure projects, according to the Web site of the Ukrainian government.

The first-ever EIB operation in Ukraine was on rehabilitation of major highway between Ukraine and the European Union, linking Ukraine's capital Kyiv to the neighboring EU Member-States of Hungary, Slovakia, and Poland. Other projects include rehabilitation and modernization of water supply and wastewater collection in Mykolayiv Vodokanal (Southern Ukraine), construction of electric power transmission line between Rivne and Kyiv, etc.

The European Union's Bank, EIB, finances projects in Ukraine according to EU Council and European Parliament mandate for the Eastern Partner Countries estimated at EUR 3.7 billion for the period of 2007-2013. The EIB also has a facility for the Eastern Partners (Ukraine, Moldova, Georgia, Armenia, Azerbaijan and Russia) of an amount up to EUR 1.5 billion.

SOURCE Worldwide News Ukraine