Egis starts a new project in the urban public transport in Ukraine

On 5th February, a kick-off meeting for the launch of the public transport project in Kryvyy Rih Trolleybus was held in EBRD Kyiv Office in the presence of Municipality representatives and senior bankers.

     In this sub-project of the Ukraine Public Transport Framework (UPTF), Egis will provide consulting services of due diligence for the municipal company “CityElectrotrans” (KRCT).

     Kryvyy Rih with a population of 630,000 inhabitants is one of the largest industrial centers and the longest city of Ukraine (66 km of length). Its trolleybus fleet, which is a widely presented and affordable urban transport for the citizens, is suffering from under-investment. Therefore, EBRD decided to allocate 8 million euro for infrastructure modernization program.

     In the end, it will finance the procurement of up to 50 new low floor trolleybuses, including maintenance and diagnostics equipment and related infrastructure. The role of the Consultant is to confirm through a due diligence analysis that this considerable investment will assure the best possible and long-term result for the development of the Client company. 

Project dossier

     Egis’ task in this assignment is to develop a sustainable investment plan (including financial analysis and suitable business model) for the public transport system for the city of Kryvyi Rih.

     Thus, the scope of work consists in the deep diagnosis of the existing public transport demand and market, including the regulatory and institutional framework, as well as a transport operator analysis with conclusions on the proposed investment justification.

     This is the first due diligence awarded to Egis under this EBRD Framework Agreement, which demonstrates the international and local expertise of the Group in this sector in Ukraine. The Framework Agreement covers 8 cities, where Egis could potentially extend its activities.