Early Warning System

Countries

Ukraine

Geographic location where the impacts of the investment may be experienced.

Specific Location

City of Kharkiv

Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.

Financial Institutions

European Bank for Reconstruction and Development (EBRD)

International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.

Project Status

Proposed

Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.

Bank Risk Rating

Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."

Borrower

City of Kharkiv

A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.

Sectors

Law and Government
Transport

The service or industry focus of the investment. A project can have several sectors.

Investment Type(s)

Loan

The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.

Investment Amount (USD)

$ 27.29 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 25
Converted using 2024-08-08 exchange rate.

Project Cost (USD)

$ 38.20 million

Bank Documents

Framework project: Resilience and Livelihoods Framework

Primary Source

Original disclosure @ EBRD website

Updated in EWS Aug 10, 2024

Disclosed by Bank Aug 8, 2024

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description

If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the project consists of 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 support to the City of Kharkiv via liquidity financing to its municipal utilities/operators, to mitigate the effect of the ongoing war on the City's financial position, and to ensure uninterrupted provision of essential municipal services to the City's residents, internally displaced persons ("IDPs") and enterprises.

The recipients of liquidity support from the City are planned to be the four municipal operators:

i) the Communal Enterprise "Kharkivsky metropoliten", an existing client of the Bank;

ii) the Communal Enterprise "Trolleybus depot no. 2", an existing client of the Bank;

iii) the Communal Enterprise "Saltiv tram depot"; and

iv) the Communal Enterprise "Kharkiv heat networks" (together the "Recipients").

The Bank's loan is expected to support the key municipal utilities and public transport operators in 2024-2025 by addressing their critical liquidity needs, to ensure uninterrupted provision of essential public services in response to direct damage from the war, additional demand for services due to the presence of a significant number of IDPs and the City's shrinking liquidity.

In the absence of the Bank's support, given the on-going war and its effects on the local economy and ongoing forced displacement and labour market volatility, there is a high risk of disruption to infrastructure services provision, compromising infrastructure service delivery, which is needed both for Kharkiv's economic recovery and the City's private sector.

Early Warning System Project Analysis

For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

Categorised B (2019 ESP). The provision of short-term working capital to support liquidity of the City, to compensate for temporary revenue losses and additional expenses due to the ongoing war, and also support with operating and maintenance costs to the existing clients, is not associated with any new environmental or social (E&S) risks or impacts.

Investment Description

Here you can find a list of individual development financial institutions that finance the project.

European Bank for Reconstruction and Development (EBRD)

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").

Total Project Cost: EUR 35,000,000.00

(EUR 25 million senior loan co-financed by an investment grant of EUR 10 million from the EBRD Crisis Response Special Fund benefiting from the US government contribution).

Private Actors Description

A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Recipients: The Communal Enterprise "Kharkivsky metropoliten"(an existing client of the Bank); The Communal Enterprise "Trolleybus depot no. 2" (also an existing client of the Bank); The Communal Enterprise "Saltiv tram depot" and; The Communal Enterprise "Kharkiv heat networks".

Kharkiv is the second largest city in Ukraine (and is the centre of a metropolitan area comprising many satellite towns) located in the north-eastern part of Ukraine, accounting for ca. 3 per cent of national population (at the pre-war estimates). The City hosts a significant internally displaced population, with 140 thousand people officially registered as of the end of April 2024. Amongst the regional centres in Ukraine, Kharkiv is the largest by population, the second largest by territory and the largest education and scientific centre.

Contact Information

This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

COMPANY CONTACT INFORMATION

Olga Demianenko
odemyanenko@gmail.com

ACCESS TO INFORMATION

You can request information by emailing: accessinfo@ebrd.com or by using this electronic form: https://www.ebrd.com/eform/information-request

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent.

You can contact the PCM at: pcm@ebrd.com or you can submit a complaint online using an online form at: http://www.ebrd.com/eform/pcm/complaint_form?language=en

You can learn more about the PCM and how to file a complaint at: http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html