A senior loan of up to EUR 25 million consisting of EUR 15 million committed ("Tranche 1") and EUR 10 million uncommitted financing ("Tranche 2") to provide emergency liquidity support to the City of Lviv (the "City") and key municipal utilities/operators - existing clients of the Bank ("Recipients") in order to mitigate the effect of the ongoing war on the City's financial position (the "Project" or the "Facility").
The proceeds of the Bank's investment will be used for liquidity support to the City to provide support to the City itself and key municipal companies, existing clients of the Bank (Recipients) - to compensate for temporary revenue losses (in particular capital revenues) and additional expenses due to the ongoing war related issues and support the City's vital municipal infrastructure providers with the day-to-day running costs (payroll, etc.), operating and maintenance costs, servicing the debt under existing projects with the EBRD (if required).
The Project is consistent with the "War on Ukraine - EBRD Resilience Package".
ETI score: 70
The project will contribute to the following TI qualities:
Primary - Inclusive -as the Project will help the City to adapt to the impacts of the war in Ukraine, in particular with respect to the refugee flows i and to continue its support to incoming and existing IPDs.
Secondary - Resilient - as the Project will support the City and consequently its key municipal companies affected by the wider economic consequences of the war
CITY OF LVIV
The City of Lviv, the administrative centre for Lviv Oblast, is the seventh largest city in Ukraine and the largest one in the western part of the country with a population of 758,000 people, and ca. 1 million in Lviv agglomeration.
Given its location, and the City's role as a major educational (27 universities) and economic centre and the concentration of industry (including food industry, light industry, IT industry with ca. 21 thousand IT specialists, heavy machinery, chemical and construction industries), it is a natural destination for IDPs.
EBRD Finance Summary
A senior loan of up to EUR 25 million consisting from EUR 15 million committed ("Tranche 1") and EUR 10 million uncommitted financing ("Tranche 2")
Total Project Cost
The City requires the Bank's support amid the unprecedented crisis in Ukraine caused by the ongoing war with the Russian Federation. While the previous project with the City (RF i Lviv Liquidity support signed in 2021) helped to mitigate the negative impact of COVID-19, the City now has to find sources of additional liquidity to support its day-to-day operations. Local lenders are not able to provide such medium term financing, given difficult economic situation in the country.
EBRD financing specifically targets Resilience and Livelihoods programme aiming to help the City, key municipal operators and the City's residents to cope with negative impact of the ongoing war in Ukraine.
Environmental and Social Summary
Categorised B (2019 ESP). The provision of short-term working capital to the existing clients is not associated with any new environmental or social (E&S) risks or impacts. ESDD has been undertaken by ESD specialists and confirmed that the City and companies have demonstrated encouraging signs of resilience and adequate policy making even under war-time circumstances and largely continue to be in compliance with national law and relevant EBRD PRs, and are on track with implementation of the existing ESAPs. However, the institutional capacity and resources of the companies were significantly stretched due to the war situation and unprecedented pressure to address Environmental, Social, Health and Safety and Public safety (ESHS) risks and issues. Therefore this project will be supported by the TC to provide ESHS management capacity support for the municipal clients, to ensure implementation and governance of the existing projects in line with the requirements of the PRs. Support will also be provided to the City to address the needs for restoration, adaptation, and development for the war and post-war periods according to the principles of sustainable development and Build-Back-Better approach. The Clients will be also provided with support to review the current methodology for monitoring and reporting GHG emissions and necessary improvements/changes/adjustments if needed. The Clients are required to continue to ensure that the new project complies with the PRs as well as submit annual E&S reports to the Bank.
Technical Cooperation and Grant Financing
TC: Environmental, Social and Health Safety Management Capacity Support for the City of Lviv and the municipal companies.The TC will provide ESHS management capacity support for the municipal clients, to ensure implementation and governance of the existing projects in line with the requirements of the Environmental and Social Policy (ESP)
Company Contact Information
Pavliv Andriy Petrovych
+38 (032) 254-60-06
Rynok Square, 1, Lviv, Lviv Oblast, Ukraine, 79008
PSD last updated
20 Sep 2022
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