KHARKIV METRO EXTENSION

Promoter – Financial Intermediary

KP KHARKIVSKY METROPOLITEN

Location

• Ukraine

Description

Extension of the Kharkiv metro system in Ukraine. The loan would finance the construction of a 3.5 km metro extension towards Odeska. This will be complemented by two new stations, a depot, and purchase of new rolling stock.

Objectives

The project will improve public transport in Kharkiv by extending the metro network, and making it more attractive for commuters. Consequently, it is expected that the investment will result in a modal shift away from private car use, thus reducing the negative impact of car transport on the environment.

Comments

This operation is covered by the EU Guarantee for EIB loans outside the EU.

Sector(s)

• Transport - Transportation and storage

Under ELM Guarantee

This operation is covered by the EU Guarantee for EIB loans outside the EU.

Proposed EIB finance (Approximate amount)

EUR 160 million

Total cost (Approximate amount)

EUR 330 million

Environmental aspects

The Bank will require the promoter to ensure that all components of the project comply with EIB environmental and social standards. If situated in the EU, the project would fall under Annex II of the Environmental Impact Assessment (EIA) Directive and would be subject to screening. For this purpose, a technical assistance project was put in place in 2016, which produced an environmental and social impact assessment (ESIA) that includes an environmental and social action plan and a stakeholders engagement plan. Furthermore, a resettlement action plan is being prepared, as the project may require resettlement of some households and businesses. The resettlement plan and plans for scrapping old carriages (if any) will be verified during appraisal.

Procurement

The Bank will require the promoter to ensure that implementation of the project will be done in accordance with the Bank's Guide to Procurement.

Status

Signed - 11/12/2017