IFC To Boost Green Transport In Ukraine’s City Of Zaporizhzhia

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In support of Ukrainian municipal authorities efforts to build climate-resilient, sustainable cities, IFC is providing the city of Zaporizhzhia with a EUR35 million loan to implement a smart city platform, as well as modernize and upgrade its public transport system. The project is a core component of IFC’s broader strategy to support Ukraine’s infrastructure development, climate change initiatives, and post-pandemic economic recovery.

Zaporizhzhia is one of the largest industrial centers and densely populated cities in southern Ukraine. To further develop its infrastructure after years of underinvestment and to encourage energy efficiency, the municipality is working on an urban development master plan focused on efficient transport solutions, deployment of greener technologies, and the implementation of a smart city platform. The investment, consisting of EUR33 million of IFC own-account financing and EUR2 million in blended finance through the Clean Technology Fund, will work towards achieving the city’s climate and improved public transport objectives.   

“I’m delighted to say that we are building a new city. IFC’s investment will allow Zaporizhzhia to implement a number of infrastructure projects benefitting tens of thousands of the city’s residents who will be able to use modern public transport and enjoy the modernized park in the city center,” said Zaporizhzhia City Mayor, Volodymyr Buryak.

To support the city’s efforts to improve the quality of life for its citizens, IFC’s investment will help the municipality rehabilitate up to 2 kms of roads, purchase modern battery-electric trolleybuses and electric buses, and upgrade the electric transport infrastructure. It will also support the installation of message boards featuring information on traffic conditions that will minimize travel time. IFC will also help install municipal smart city infrastructure to optimize traffic management and enable real-time monitoring of heat and water pipe pressure aiming to ensure the quality and sustainability of communal services.

“IFC’s Cities Initiative aims to support Zaporizhzhia’s transformation plan, which will contribute to the country’s post-pandemic economic recovery,” said Jason Pellmar, IFC’s Regional Manager for Ukraine, Belarus and Moldova. “IFC is using its global expertise to help Zaporizhzhia find innovative and sustainable solutions to fuel its growth. We hope to replicate this successful experience in other cities soon.”

IFC, in partnership with the Austrian Federal Ministry of Finance and the Swiss State Secretariat for Economic Affairs SECO, worked early on with the Zaporizhzhia City Council to help prepare the project for financial close and enhance its development impact. IFC provided recommendations for the design of Zaporizhzhia’s smart city platform and an innovative smart city strategy to improve e-governance and provide better digital services for local communities.

IFC also helped improve the city’s management practices to address environmental and social risks along with supporting Zaporizhzhia in securing its first international credit rating.

Since 2004, IFC has invested and mobilized over $9 billion in more than 280 projects in the Cities infrastructure space. In Ukraine, there are projects underway as part of this initiative, which will help make climate-smart infrastructure projects bankable and attract private investments to the fast-growing urban centers. In 2019, IFC helped the city of Mariupol finance the purchase of 64 low-floor large capacity public buses and upgrade related infrastructure.  

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