IFC boosting modernization of Ukraine’s urban infrastructure
The International Finance Corporation (IFC), a member of the World Bank Group, and the Mayor’s Office of the city of Kryvyi Rih today agreed to combine efforts to attract investments for reliable and efficient public transport infrastructure. This is part of IFC’s broader strategy to accelerate economic growth in Ukraine.
Ukraine’s public transport infrastructure suffers from inadequate investment. Kryvyi Rih’s tramway network is a key component of its public transportation network, which is in need of upgrading to support the city’s growing industrial base. IFC experts will support the replacement of existing vehicles to energy-efficient low-floor trams that provide improved accessibility for the public. In an effort to reduce congestion and improve service quality, the experts will also provide recommendations for the modernization of the tram’s infrastructure.
“In recent years, we have systematically engaged in the development of electric municipal transport. Currently, we continue to work on the modernization of our public transport fleet, and the very next step is the purchase of new trams. This will be done in cooperation with IFC. Kryvyi Rih strives for comprehensive development in all spheres of life and we look forward to constructive cooperation with our partner,” said Kryvyi Rih City Mayor Yuri Vilkul.
IFC’s support will also include helping the city obtain an international credit rating to enhance its ability to attract long-term financing. This is IFC’s fourth project in Ukraine under its Cities initiative, which supports development and financing state-of-the-art urban projects. Other Cities’ projects include modernization of high-speed public transport in Kyiv, environmentally-friendly bus fleets in Mariupol and Lviv, and smart-city infrastructure in Zaporizhzhia.
Jason Pellmar, IFC Regional Manager for Ukraine, Belarus, and Moldova, said, “We already see visible changes in cities across Ukraine as a result of IFC’s engagement. We aim to help Kryvyi Rih improve its own capabilities and mobilize investments to bring its key public transport infrastructure up to international standards, improving the quality of life of the residents of Krivyi Rih.”
IFC’s Cities initiative is implemented in partnership with the State Secretariat for Economic Affairs of Switzerland SECO and the Federal Ministry of Finance of Austria. The program aims to help implement climate-smart infrastructure projects, make them bankable and attract private investments, complementing scarce public-sector resources and strengthening Ukraine’s fast-growing urban centers.
Since 2004, IFC has committed over $3.3 billion in long-term financing across Ukraine’s economy—with a focus on infrastructure, agribusiness, and financial markets—and implemented a wide-ranging advisory program. In addition, we have supported more than $1.2 billion of trade through IFC’s Global Trade Finance program.
The International Finance Corporation is a sister organization of the World Bank and member of the World Bank Group, the largest global development institution focused on the private sector in emerging markets, working with more than 2,000 businesses worldwide, using capital, expertise, and influence to create markets and opportunities where they are needed most. In fiscal year 2019, the IFC delivered more than $19 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity.