Lviv city secures EUR 12 mln EIB loan for new trams
02 Sep 2020

September 2, 2020 – The European Investment Bank (EIB) provides EUR 12 mln loan to purchase 10 new low-floor trams for Lviv city. The city will additionally co-finance EUR 8.8 mln. The new trams will not only increase the mobility of more than 724 thousand city residents, but also accelerate the transition to more energy-efficient and environmentally friendly transport. This loan is a part of the Ukraine Urban Public Transport Project (UUPTP), aimed at improving public transport infrastructure in Ukrainian cities.

“EIB loan for new trams in Lviv will foster environmentally-friendly, safe, and sustainable transport. At the EU climate bank, we are convinced that a well-functioning tram network can make a vital contribution to reducing the number of cars on the roads and thus, lower pollution and mitigate climate change,” says Jean-Erik de Zagon, Head of the EIB Representation in Ukraine.

The European Investment Bank has been a partner of Ukraine in financing of public transport infrastructure projects since 2007. The Ukraine Urban Public Transport Project (UUPTP) is a EUR 200 million framework loan for the financing of urban public transport investments in 11 municipalities in Ukraine. The additional EU-funded technical assistance under this project contributes to assisting the Ministry of Infrastructure and participating cities in restructuring and modernising Ukraine’s urban public transport sector and gradual approximation towards operating standards and policies comparable to those in the EU.

“Tram is one of the most environmentally friendly and energy-efficient modes of public transport. Thanks to this project, we are trying to gradually increase the share of rail transport and trolleybuses, reducing in such a way emissions in cities. Sustainable and environmentally friendly transport is one of the priorities of the European Green Deal, and Ukraine wants to be as close as possible to the European standards in this regard,” says Natalie Forsyuk, Ukrainian Deputy Minister of Infrastructure.

Credit funds were reserved for 20-meter 3-section tram cars in 2016, but after the conception of a new transport strategy of the city, it was decided to purchase 29-33-meter multi-section tram cars. The winners of the tender for tram procurement are Consortium “Joint Ukrainian-German Venture “Electrontrans” LLC and “Plant ElectronMash” LLC. Companies are to supply the city with ten low-floor multi-section 30.2 meters long trams. The wide doors and low floor level of the tram car will speed up the boarding and alighting of passengers, especially people  with  limited  mobility: passengers with children, people with disabilities, etc.

“Lviv is a city that has been setting an example in Ukraine for transport renewal for many years. And here we have a precise position: those are electric vehicles that should dominate. First of all, it is a question of ecology, as 30% of all diseases in the world are caused by air quality. And secondly, it is financially profitable. Also, low-floor trams and trolleybuses, manufactured here in Lviv, contribute to the comfortable movement throughout the city for all its residents, including those with limited mobility. We thank our long-time partner, the European Investment Bank, for its cooperation and assistance,”  states Andrii Sadovyi, Mayor of Lviv city.

“The purchase of new low-floor tram cars is one of the two main ways to renew the tram fleet in Lviv. According to our plans, by the end of 2025, we should completely upgrade and modernize the tram fleet. Namely, we are willing to purchase ten new 5-section trams and overhaul and upgrade up to 50 old Tatra KT4-SU. It will significantly change the quality of public transport and provide comfortable transportation of all our passengers, including people with limited mobility. In this, we are understood and supported by the European Investment Bank, which is our partner in the implementation of these projects,” says Andrii Svyshcho, director of the Lviv utility company Lvivelectrotrans.


Background information:

The European Investment Bank (EIB) is the lending arm of the European Union. The EIB has worked with Ukraine since 2007. The EU bank is committed to supporting Ukraine and helping to create the conditions necessary for the achievement of economic stability. At the moment, the EIB has a portfolio of loans totaling EUR 6.5 bln for Ukraine. As one of the key IFIs in Ukraine, the European Investment Bank focuses on social and economic infrastructure, transport and connectivity, local private sector development, energy efficiency, climate action, and innovation.

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