OREANDA-NEWS. On February 05, 2009 The Government of Ukraine and the World Bank have started realization of a project of the WB for USD 140 mn on the development of municipal infrastructure. The Minister of Housing and Communal Services Olexii Kucherenko announced, during a briefing in the Cabinet of Ministers of Ukraine.

Olexii Kucherenko stressed that financing the project the Government sought to introduce for 3.5 years has already launched in Odesa, Chernihiv and Ivano-Frankivsk from the main component. 20 more cities are in the competition to obtain a right to receive financing in the closed component of modernization of systems of water supplies, energy saving and raising of effectiveness of work of communal enterprises.

According to the Minister of HCS the loan is provided under around 4% interest per annum for 17 years with a 5-year privileged period when only interests of the credit are paid: “These are very long, very cheap, very investment attractive funds”.

The Minister also noted the World Bank is ready to increase the sum to USD 400 mn, if this year Ukraine will have used at least one third of the provided funds. “We have started with the World Bank preparation of a credit line for financing projects of modernization of infrastructure of heat saving,” Olexii Kucherenko imparted.