According to the bank, the funds will be provided in the form of a senior loan, which has priority repayment status compared with the borrower’s other obligations. The financing is aimed at mitigating the negative impact of the war on the city’s financial position and its residents.
The beneficiaries of the support will be the Dnipro city budget, as well as two strategically important municipal enterprises — Dnipro Electric Transport Municipal Enterprise and Dniprovodokanal Municipal Enterprise. The loan is expected to provide the liquidity needed for the uninterrupted operation of public transport and water supply systems during 2026–2028.
The funds are planned to be used to cover current operating expenses, make timely payments to suppliers, pay salaries to employees of municipal enterprises, and carry out necessary maintenance and repair works on infrastructure.
The EBRD notes that the project is aimed at preserving the quality of basic municipal services amid the ongoing war and increased pressure on local budgets. Maintaining the stable operation of transport and water supply is considered one of the key resilience factors for Ukraine’s largest cities.
To reduce financial risks, the bank plans to use a guarantee mechanism under the EU’s Ukraine Investment Framework. The guarantee will cover 27% of the loan amount under a First Loss Risk Cover model, allowing the EBRD to provide financing on more favorable terms even amid wartime risks.
Dnipro remains one of Ukraine’s largest industrial, logistics and economic centers, making support for its municipal infrastructure important not only for the city itself, but also for ensuring the stable functioning of the regional economy as a whole.
The project is part of a broader program of international financial support for Ukrainian municipalities, aimed at preserving the operation of critical infrastructure and ensuring the uninterrupted provision of essential services to the population during the war.
