• By The Financial District


The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are supporting the western Ukrainian city of Khmelnytskyi and adjacent villages to modernise their local solid waste management. Around 300,000 residents will benefit from better waste management, cleaner groundwater and improved air quality.

The agreement on a €36.5 million financial package was signed at the EBRD 2020 Annual Meeting today. As part of the investment, the city of Khmelnytskyi is joining the EBRD Green Cities initiative. Under the programme, the city will develop and implement a Green City Action Plan, which will identify, prioritise and address the region’s most pressing environmental challenges.

It is the second solid waste investment in the country jointly financed by the EBRD and the EU. The Bank is providing a loan of up to €28.5 million to municipal utility company Spetskomuntrans, which is collecting, treating and disposing of solid waste in the Khmelnytskyi region.

This is complemented by a €5 million investment grant from the EU, an additional contribution of up to €3 million from the city of Khmelnytskyi, as well as previous technical cooperation funds provided by the EU and Sweden for the preparation of the project.

The financing package will allow for the closure of the existing landfill and the rehabilitation of the site. Two new cells will be constructed in line with EU standards, equipment will be purchased and modern recycling and composting facilities will be built. Furthermore, the city will buy new waste collection vehicles and waste containers to encourage local residents, public institutions and businesses to separate their waste.

The investment will lead to significant CO2 emission savings of up to 150,000 tonnes per year. It is to be accompanied by an educational campaign in schools, kindergartens and public organisations.

Susan Goeransson, EBRD Director, Head of Infrastructure Europe in the Strategic Infrastructure Group, said: “It is a vital part of our green investments to improve municipal infrastructure and services across the EBRD regions. I am delighted that we are signing this solid waste project in Ukraine in partnership with the EU. Khmelnytskyi is the 43rd city now participating in our growing family of EBRD Green Cities, which is already set to have an impact on more than 50 million citizens from Alexandria to Ulaanbaatar.”