OREANDA-NEWS. The European Bank for Reconstruction and Development (EBRD) is providing further assistance to the western Ukrainian municipality of Lviv, which has already embarked on an investment programme aimed at modernising of its road and public transport network. The new financing package includes a loan of up to EUR 6 million from the Bank and a parallel investment grant of up to EUR 5 million from the German Ministry for the Environment, Nature Conservation and Nuclear Safety. It is designed to continue investments in Lviv's transport infrastructure, with a focus on the urban tram network.

The project will allow the extension of tram route 4, which would link the main residential area of Sykhiv with the city centre of Lviv. This extension to the Sykhiv suburb, which has a population of almost 150,000, is expected to increase passenger volumes on public transport by 25 per cent. It will improve the reliability and efficiency of ecologically-friendly, electric public transport and promote its use, thus significantly reducing the level of emissions from cars.

This new investment builds on the first project initiated by the city and the EBRD in 2009, most of which has now been successfully implemented. This project rehabilitated tram tracks, roads and relevant infrastructure along the two most heavily-used routes in Lviv, provided a traffic management system and funded the modernisation of tram infrastructure and depots and acquisition of refurbished rolling stock.

Technical cooperation support for this project has been provided by the European Commission, through its Neighbourhood Investment Fund.

The EBRD is the largest financial investor in Ukraine. As of 30 November 2013 the Bank had committed more than EUR 8.7 billion (USD 11.9 billion) through 318 projects in Ukraine.