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European Neighbourhood Policy and Enlargement Negotiations (DG NEAR)
News article20 May 2021

European Union and EBRD support vital infrastructure in Lviv with emergency funds


The European Union (EU) and the European Bank for Reconstruction and Development (EBRD) are joining forces to provide emergency support for Lviv to ensure the uninterrupted provision of vital services in the largest city in western Ukraine despite acute pressure from the Covid-19 pandemic.

The EBRD is extending a €10 million loan to key municipal service providers and is prepared to lend another €12 million to meet the needs of the city, a longstanding client. The EU is backing the loan with a first-loss guarantee under the European Fund for Sustainable Development (EFSD), a guarantee facility to support sustainable investments in the EU neighbourhood.

The joint support will meet the liquidity and working-capital needs of the transport company Lvivelectrotrans, the road construction, maintenance and traffic-management enterprise Lvivavtodor, the water operator Lvivvodokanal, the district heating company Lvivteploenergo and the waste management operator Zelene Misto. It will compensate for temporary loss of revenue due to the health crisis and will cover day-to-day operations.

Katarína Mathernová, Deputy Director-General for EU Neighbourhood and Enlargement and Head of Support Group for Ukraine (SGUA), commented: “The European Union is happy to guarantee this EBRD loan to the Municipality of Lviv, as part of our joint support to partner countries facing liquidity shortages generated by the Covid-19 pandemic. Our joint effort with the EBRD will allow the Municipality of Lviv to continue providing essential services to the local population and will support a green recovery from the crisis.”

Matteo Patrone, EBRD Managing Director for Eastern Europe and the Caucasus, said: “This loan is another testament to our commitment to Ukraine and its citizens. The city of Lviv has been a strong, longstanding partner of the EBRD and, now that its municipal enterprises are facing financial strain, we are ready to stand by the city, together with the EU, to ensure that vital infrastructure remains operational and available.”

Mayor of Lviv Andriy Ivanovych Sadovyi added: “Lviv is one of the most successful cities with high financial performance, whose success has always been exemplary. However, we are now faced with the global pandemic. The EBRD Solidarity Package loan is not an infrastructure project. It is quick money for the operation of our municipal companies. Our partner is offering us a helping hand.”

To date, the EBRD has provided almost €140 million to the city of Lviv to help develop its transport infrastructure, improve water supply and waste management, and support road building and district heating. It has also financed a modern retail and entertainment centre, creating jobs and attracting more investment. The Bank operates an office in Lviv to better meet the financing needs of the city and businesses in western Ukraine.

Ukraine is a top-three investment destination for the EBRD. In the past two years alone, the Bank has committed €2 billion to the economy. The EBRD finances infrastructure, energy efficiency and energy security, agricultural and industrial projects as well as smaller businesses. The investments are combined with support for policies that promote a more enabling business environment.


Publication date
20 May 2021