The state-owned Ukreximbank provided financing to the Lutsk City Council for the reconstruction of wastewater treatment plants, sewer collectors and the introduction of modern water treatment technologies.
This was reported by the press service of Ukreximbank.
The transaction amount is 10 million euros for a period of 5 years. The European Investment Bank and the European Bank for Reconstruction and Development also joined in co-financing.
Ukreximbank emphasized that this is the largest internal borrowing attracted by municipalities since the beginning of the full-scale Russian invasion of Ukraine.
“The financial resource that communities have is not enough to provide all the needs for the restoration and modernization of critical infrastructure, which is needed today, because the readiness of Ukrainians to return home depends on this, and, accordingly, the restart of economic activity in society will soon begin “- says Mikhail Medko, member of the board of Ukreximbank.
According to him, raising funds from banks and international financial organizations has repeatedly confirmed its effectiveness.
“We have projects implemented this year with both large and small communities, but this is the first agreement financed simultaneously with the EIB and jointly by the Bank and the EBRD,” Medko commented.
The mayor of Lutsk, Igor Polishchuk, noted the importance of such cooperation in projects important to society.
“Even during the war, we continue to implement projects that affect people’s lives and satisfy their utility and domestic needs. A worn-out network and old equipment remains a long-standing and pressing problem, perhaps, for most communities in Ukraine. However, I am very glad that we are moving forward and are gradually restoring and modernizing our infrastructure,” Polishchuk noted.
The local enterprise “Lutskvodokanal” assures that the implementation of the funded projects will improve the quality of drinking water supplied to the population according to European standards and will reduce pollution in the Styr River basin.
As reported, in June 2023, Ukreximbank JSC and the European Bank for Reconstruction and Development (EBRD) signed a loan agreement in the amount of 50 million euros to ensure continued access to financing for war-affected enterprises and municipalities.
