Agreement to prepare loan financing new trolleybus purchase project signed with EBRD in Kharkiv

Kharkiv Mayor Hennadiy Kernes and First Vice President of the European Bank for Reconstruction and Development (EBRD) Philip Bennett have signed an agreement to prepare a loan financing the project to upgrade the trolleybus fleet of the city.

This concern our EUR 10 million loan project to buy 50 trolleybuses, and UAH 8 million out of EUR 10 million will be provided by the EBRD and EUR 2 million by Clean Technology Fund (CTF), Bennett told reporters at a briefing in Kharkiv on Tuesday.

First Deputy Kharkiv Mayor Ihor Terekhov said that the city would co-finance on VAT refunding in the amount of EUR 2 million.

He did not disclose the loan rate and its term, saying that this would be a long period.

"The loan rate will be determined later. These will be the loan rate which the EBRD provides. They are not comparable with the credit rates issued by our banks… If the agreement is approved by the loan committee, we will be able to name the terms and the rate," Terekhov said.

He also said that the loan will be sent to buy absolutely new trolleybuses.

"These will be trolleybuses with energy saving technologies. It would be decided at an international tender what trolleybuses will be bought," he said.

Bennett said that the agreement will be presented at the meeting of the EBRD board in November. He expressed hope that by the end of the year the project will be signed.