The European Bank for Reconstruction and Development announced on Tuesday that its board of directors approved $485.5 in financing for two projects in Ukraine.
The funding is part of the EBRD's operational response in Ukraine, which was approved by its board on March 25.
The first project is a $208.08 million framework facility meant to support the bank's existing clients in Ukraine's real sector. The facility will help Ukrainian companies address their liquidity and working capital needs. It will also assist Ukrainian businesses in overcoming difficulties and constraints caused by the financial crisis and the reduced availability of external funding.
The second transaction represents a $277.44 million second tranche of the Pan-European corridors road project. This funding will allow for the rehabilitation of road approaches to Ukraine. The project includes repairs to sections of M05 Kiev-Odessa and M01 Kiev-Chernigiv, which form part of the Pan European Corridor IX.
The project will also cover repairs on sections of N01 Kiev - Znamenka and R02 Kiev - Ivankiv roads and the reconstruction of the Zhytomyr bypass.
The first $346.8 million tranche of this project was successfully used to rehabilitate the final stretch of the M06 motorway between Kiev and Zhytomyr after the tranche was approved in 2010. The road is part of the Pan European Corridors III and V.
Part of the loan will be used to finance implementation of the first performance-based road maintenance contracts in Ukraine and road safety improvements.
The EBRD is the largest financial investor in Ukraine. The bank committed $12.2 billion for 326 projects in the country through April 1.