REUTERS
Ukraine and the European Investment Bank (EIB) signed a EUR 400 million loan agreement on developing and upgrading the municipal infrastructure.
The agreement was signed by Minister of Regional Development, Construction, Housing and Utilities of Ukraine Hennadiy Zubko and Vice-President of the EIB Laszlo Baranyai at the collegium of Regional Development Ministry, an UNIAN correspondent reported.
According to the minister, the agreement is "unprecedented" due to the fact that this is the cheapest lending allocated to utility companies for 30 years (loan agreement term) for restoring water supply and for 22 years for restoration of heat supply, with five and eight years of grace period, during which the utility companies do not carry out loan repayments.
Zubko also noted that the loan funds will enable to restore and upgrade the municipal infrastructure without the need to increase tariffs for consumers.
In turn, Baranyai said the loan seeks to help improve the efficiency of utility infrastructure in response to energy supply disruptions and financial crisis.
"The funds will be used to improve the obsolete Soviet utility infrastructure, which is extremely inefficient," the EIB vice-president said.
As UNIAN reported earlier, the attracted funds will be invested in district heating and hot water supply systems, centralized and decentralized drinking water supply, sewerage systems, energy efficiency of buildings, as well as exterior lighting in settlements and treatment of household wastes.
As UNIAN reported earlier, the Board of Directors of the European Investment Bank (EIB) approved new loans totaling EUR 1 billion for Ukraine as part of a EUR 3 billion package of special measures for the country for the period 2014-2016.