EIB to provide EUR 30M loan to Ukrposhta

EIB to provide EUR 30M loan to Ukrposhta

Ukrinform
The European Investment Bank (EIB) will provide EUR 30 million loan to JSC Ukrposhta, Ukraine’s national postal operator, to continue the modernization and digitalization of the country’s postal services. The loan will allow Ukrposhta to start modernizing its logistics network with three new sorting hubs, 20 postal depots and IT infrastructure.

The loan agreement was signed on the sidelines of the EU-Ukraine Summit in Brussels on October 6, the press service of the Infrastructure Ministry reports.

“We continue to create qualitatively new infrastructure in Ukraine and cooperate in this area with our permanent international partners for the implementation of large-scale investment projects. The signing of this guarantee agreement with the European Investment Bank will provide us with the opportunity to qualitatively modernize the existing logistics network of Ukrposhta, namely to create new sorting centers and purchase the necessary modern equipment for faster and more convenient shipments,” said Infrastructure Minister Vladyslav Kryklii.  

It is noted that the EIB loan is provided together with technical assistance for the modernization of Ukrposhta's logistics network, which includes market analysis, development of a business plan and investment needs for the new network. The EIB will also assist in the development of an investment program, which is a key component in securing bank financing.

According to EIB Vice-President Lilyana Pavlova, efficient, affordable and modern postal services are crucial for faster, sustainable long-term economic development, as they unlock new business opportunities, creates jobs and make trade easier and more profitable.

Due to the loan from the EU bank, Ukrposhta will design and roll out a new, modern parcel logistics network, reduce delivery times and improve the overall quality of the postal service for millions of Ukrainians.

In turn, General Director of JSC Ukrposhta Ihor Smilianskyi said that the EIB loan is a part of a major investment in postal infrastructure and next few years will be a period of the largest modernization in the history of Ukrposhta. “In total, as part of the strategy to upgrade the logistics network, we plan to attract about EUR100 million for the construction of eight sorting hubs and 62 regional depots. This will comprise loans from the EIB and the EBRD, as well as the company's own investments. The new logistics centers will be fully automated and moved out of the city, which will significantly speed up the shipping process and improve connections as well as the environment in cities,” he said.

As reported by Ukrinform, the 22nd EU-Ukraine Summit took place in Brussels on October 6, during which representatives of Ukraine and the European Union signed six financial agreements worth almost EUR 400 million.

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