Oschad to finance Lviv for UAH 840 million for construction and reconstruction of infrastructure facilities

Oschadbank has entered into a loan agreement with Lviv City Council for UAH 840 million to finance the city's development budget. The term of the agreement is 5 years. The intended use of the funds is for the construction and reconstruction of facilities in the field of housing and communal services, road maintenance, and overhaul of administrative service centers for veterans as part of the implementation of relevant projects. The prevailing loan amount will be used to complete the construction of the Lviv Waste Processing Plant.

According to the Lviv City Council, the volume of construction work at the facility is currently 70% complete. Once operational, the waste treatment facility will be able to process more than 250,000 tons of waste per year in a mechanical and biological way. This should fully satisfy the city's needs to streamline solid waste management. 

“Despite the fact that Oschadbank's share in financing municipalities is more than 60% of the market, this loan agreement is the first in our cooperation with the Lviv City Council during the full-scale war. As a conscious bank committed to ESG principles, we are pleased to participate in the implementation of such an important environmental project for one of the most European cities in the country. According to the Ministry of Environment, Ukraine generates more than 10 million tons of solid household waste annually, only 10% of which is sent for recycling. An increase in this volume by another 2.5% is a significant contribution to the country's environment. Moreover, up to 30% of the waste produced by the new waste processing plant will be RDF*, which will be supplied under a direct contract to cement plants. Thus, it frees up a certain amount of other types of generation for the needs of consumers, which is important in the context of the destruction of our energy system by the enemy,” commented Yurii Katsion, Deputy Chairman of the Management Board of Oschadbank in charge of corporate business.

“After the city council approved the possibility of borrowing, we held a tender among state-owned banks, and Oschadbank offered the best conditions. It was important for the city to receive these funds in tranches, that is, to take funds when the need arises at the enterprises implementing the relevant projects. The borrowed funds will be used to implement 5 projects: the construction of an alternative bridge on Kovcha Street, the arrangement of two centers for veterans, the reconstruction of the power supply system of the Pivnichna shopping center (HPC-2), and the completion of the construction of a waste processing plant,” said Victoria Dovzhyk, Director of the Financial Policy Department of the Lviv City Council.

Additionally:

The Lviv Waste Processing Plant construction project is also being implemented with the financial support of the European Bank for Reconstruction and Development (EBRD) and the Eastern European Energy Efficiency and Environment Partnership (E5P) Fund. The area of the waste processing plant site is 9.66 hectares. The total area under the complex is almost 22 thousand square meters.

*RDF (refuse derived fuel) is a fuel derived from the residues of shredded and compressed solid waste into briquettes or pellets.