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UPTF2 - Poltava Trolleybus



Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Approval date:

24 Jul 2019



PSD disclosed:

21 May 2019

Translated version of this PSD: Ukrainian

Project Description

The provision of a € 10 million loan to Municipal Enterprise 'Poltavaelectroavtotrans' (the "Company") to finance (i) the acquisition of up to 40 new trolleybuses and related maintenance and diagnostic equipment, (ii) modernisation of three substations.

The Project is part of the proposed a € 250 million Ukraine Public Transport Framework II consisting of municipal-guaranteed loans to public transport companies in Ukraine to facilitate critical improvements in public transport infrastructure in a number of cities across Ukraine.

Project Objectives

The Project will address critical challenges, including, inter alia, air pollution, quality of public transport services and infrastructure in urban transport development of the City of Poltava by improving both the access to clean urban transport, as well as the capacity and efficiency of public transport services.

Transition Impact


The Project will promote significant environmental improvements and support the Green transition quality through improving access to clean urban transport and capacity and efficiency of public transport services, improving air quality and reducing pollution both due to investments into fleet and infrastructure renewal and due to associated modal shift to clean urban transport. The Project will also pursue TI objectives related to the Well-governed transition quality through the introduction of a Public Service Contract ("PSC") between municipality and public transport company. The PSCs will enable service support payments based on a price per vehicle -kilometre or passenger - kilometre and the implementation of an agreed service plan. The adoption and implementation of PSCs will increase transparency and accountability in the relationship between the City and the Company by establishing clear rights and obligations, incentives for greater efficiency and higher quality of services.

Client Information


Municipal Enterprise "Poltavaelectroavtotrans", a municipal public transport operator wholly owned by the City of Poltava.

EBRD Finance Summary

EUR 10,000,000.00

Total Project Cost

EUR 10,000,000.00

Environmental and Social Summary

Categorised B (ESP 2014). The Project will bring substantial environmental and public health benefits through modernisation of the trolleybus fleet, contributing to improving air quality in the City, increasing the accessibility and mobility for all user groups and improving overall quality, safety and efficiency of urban transportation. Any adverse impacts will be site specific and addressed through appropriate mitigation measures.

Environmental and social due diligence ("ESDD") for the Project, which has been carried out internally included an environmental and social analysis of the proposed investment as well as a review of environmental, social, health and safety policies and procedures and the capacity of the company to manage risks associated with the proposed Project in line with the EBRD's Performance Requirements ("PRs").

The ESDD identified that the Company has the institutional capacity to implement the Project in compliance with the Bank's PRs, and is compliant with Ukrainian legislation, however it was noted that the Company needs to improve their maintenance workshops and sanitary & hygienic facilities for the workers and ensure effective operation of the washing station and treatment facilities. The Project implementation is limited to the urban area within the boundaries of the existing urban development and no sensitive ecological receptors or protected zones will be affected. In addition, it is confirmed that the Project will not have significant adverse social impacts to local communities or other Project affected parties, nor will the Project require the acquisition of lands or result in involuntary resettlement or economic displacement.

An Environmental and Social Action Plan ("ESAP") has been developed and agreed with the Company to address the areas for improvement identified during the ESDD and carry out the necessary mitigation measures which will enable the Company to comply with national regulations and the Bank's PRs. The ESAP covers development and implementation of the Environmental Management and Occupational Health & Safety Management Systems (including improvement of sanitary and hygienic conditions for the Company employees) as well as development and implementation of a Stakeholder Engagement Plan. The environmental and social performance of the Project and implementation of the ESAP will be monitored through annual E&S reports and site visits when deemed necessary.

Technical Cooperation


  • TC1: Technical and Financial Due Diligence of the Project. The total cost of this TC assignment is EUR 98,500, financed from a Framework-level TC for due diligence, funded by the EU Municipal Project Support Facility ("MPSF").


  • TC2: Project Implementation Support. The estimated total cost of this TC assignment is up to EUR 200,000, proposed to be financed from the Framework-level PIU TC, funded by the EU MPSF.
  • TC3: Corporate Development Programme ("CDP") and Stakeholder Participation Programme ("SPP"). The estimated cost of this TC assignment is up to EUR 150,000, proposed to be financed from the Framework-level CDP TC financed by the EU MPSF.

Company Contact Information

Zaytsev Evgen
+38 05322 29053
+38 05322 29053
10 Halturina Street, Poltava, 36000, Ukraine

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