EIB provides over €46 million to improve energy efficiency, urban transport and municipal services in Ukrainian cities

This article is published in association with European Investment Bank.

• More than €46 million in EU-guaranteed funding has been disbursed to help Ukrainian cities maintain and restore essential urban services and address critical infrastructure needs.
• This includes support for energy-efficient public buildings, urban transport to ensure mobility, and essential municipal services that remain operational despite the war.
• These efforts will benefit the cities of Dnipro, Kamianske, Kovel, Kremenchuk, Kyiv, Lutsk, Lviv, Mykolaiv, Rivne, Ternopil, Uzhhorod, Zaporizhzhia and Korets.

The European Investment Bank (EIB), the bank of the European Union, disbursed €46.2 million in total for projects to help Ukrainian municipalities rebuild vital public infrastructure and maintain essential services for their citizens. The funds are backed by an EU guarantee under the European Commission’s  Ukraine Investment Framework.

From this amount, €28 million has been disbursed under the Ukraine Urban Public Transport Projects I and II, supporting the renewal of city transport fleets with modern, energy-efficient vehicles. This funding will benefit Kyiv, Lviv and Mykolaiv with new buses; Zaporizhzhia, Ternopil and Kremenchuk with trolleybuses; Dnipro and Kamianske with trams; and Uzhhorod with electric buses. These investments help improve urban mobility, cut emissions and strengthen local resilience by keeping sustainable public transport systems operational despite wartime challenges.

Under the Ukraine Municipal Infrastructure Programme, the EIB has disbursed €13.3 million to help Ukrainian cities upgrade vital local services and improve everyday life for residents. The financing supports rehabilitation of public lighting systems in Dnipro and Kamianske, modernisation of water and sewerage systems in Lutsk, energy-efficiency upgrades in schools and kindergartens in Sumy, and solid waste management improvements in Lviv for the reclamation of the Hrybovychi landfill. These projects improve the quality, reliability and efficiency of essential urban infrastructure, helping cities recover faster and serve as examples for future initiatives in sustainable urban development.

An additional €4.9 million was provided under the Ukraine Public Buildings Energy Efficiency Programme, supporting projects in the cities of Rivne, Korets and Kovel. The sub-projects focus on energy-efficient upgrades of schools, kindergartens, and medical facilities, including insulation, window replacement, and modernisation of heating systems. This financing is complemented by an E5P investment grant dedicated to hospital buildings, such as the Kovel City and District Territorial Medical Association, helping to improve energy performance, comfort, and service quality in healthcare facilities.

EIB Vice-President Teresa Czerwińska, who oversees the Bank’s operations in Ukraine, said: “The EIB’s support for Ukraine continues every day – through targeted investments that help cities keep essential services running. From clean public transport and modern street lighting to energy-efficient schools and hospitals, these projects make daily life safer, more reliable and more sustainable for Ukrainian communities, even in the face of war.”

European Commissioner for Economy and Productivity, Implementation and Simplification Valdis Dombrovskis said: “This €46 million in financing for Ukrainian cities, backed by the EU budget, is directed where it is needed most: towards rebuilding and sustaining essential public services for Ukraine’s citizens. This support comes at a critical moment, as Russia intensifies its attacks on civilian infrastructure. The European Commission is determined to continue to work closely with the European Investment Bank, using the Ukraine Facility to provide vital assistance to Ukraine and its people.”

Background information

The EIB in Ukraine

The European Investment Bank (EIB) has been working in Ukraine since 2007. Following Russia’s full-scale invasion in 2022, the Bank has stepped up its financial support to help strengthen the country’s resilience and rebuild its infrastructure. Since then, the EIB has provided €4 billion in financing for Ukraine. Through its EU for Ukraine (EU4U) Initiative, coupled with its key role in implementing a dedicated window of the Ukraine Facility, the EIB is strongly committed to accelerating its activities in line with the mandate given by EU leaders, in close cooperation with the European Commission, the European Parliament, Member States and international partners.