The European Bank for Reconstruction and Development (EBRD) is allocating €25 million in funding to Dnipro to ensure the stable operation of the city’s key municipal enterprises. The funds will be provided in the form of a senior loan with a priority repayment right, which will minimize risks for the municipal budget and facilitate effective resource utilization in wartime conditions.
This is reported by Finway
Financial support for Dnipro’s strategic enterprises
The main recipients of this financial assistance will be the Dnipro city budget, as well as two leading municipal enterprises – KP “Dnipro Electric Transport” and KP “Dnipro Vodokanal”. Thanks to the loan, it is planned to ensure a sufficient level of liquidity for the uninterrupted operation of public transport and water supply systems at least until 2028.
The funds raised will be directed towards covering current operational expenses, timely payments to suppliers, salary payments to municipal service personnel, as well as conducting necessary maintenance and repairs of the city’s infrastructure.
“The project aims to maintain the quality of basic municipal services amid ongoing war and increased pressure on local budgets. Supporting the stable operation of transport and water supply is seen as one of the key factors for the resilience of the largest Ukrainian cities.”
EU guarantees and strategic significance for the region
To reduce financial risks within the project, a guarantee instrument from the EU Investment Program for Ukraine (Ukraine Investment Framework, UIF) will be utilized. The guarantee will cover 27% of the total loan amount on a first-loss basis, allowing the EBRD to provide financing on more favorable terms even in challenging wartime circumstances.
Dnipro remains one of the largest industrial, logistics, and economic centers in Ukraine, so supporting its municipal infrastructure is of strategic importance for the stability of not only the city but also the region as a whole.
This initiative is part of a large-scale program of international financial assistance to Ukrainian municipalities aimed at ensuring the resilience of critical infrastructure and the continuous provision of vital services to the population amid war.