The project is part of the EBRD's "Resilience and Livelihoods Fund" (RLF) programme and provides for EUR6 million in a principal tranche, while up to another EUR3 million may be provided additionally.
The funds are to go toward covering current expenses, repairs and maintenance necessary for the stable operation of the district heating system and municipal transport.
Part of the credit risk will be covered by a European Union guarantee under the Municipal, Infrastructure and Industrial Resilience (MIIR) programme within the Ukraine Investment Framework (UIF).
The EBRD notes that the project should help the city maintain the uninterrupted operation of critical public services for residents, internally displaced persons, budgetary institutions, and businesses.
According to the bank, the population of Ternopil is about 226,000 people, of whom about 28,000 are internally displaced persons.
The city is already cooperating with the bank on projects for the modernization of centralized heat supply and the development of trolleybus transport.
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