Chinese banks pledge $1.7 billion loan to City Council of Kyiv for Fourth Metro Line in Kyiv Project

In May 2017, the City Council of Kyiv and the Chinese Government signed a memorandum of understanding (MoU). Under the terms of the MOU, the Chinese Government agreed in principle to issue a $1.7 billion to support the construction of the fourth metro line in Kyiv. This metro line would add 20km of track with 13 stops to link the city center of Kyiv to the residential area of Troieshchyna. According to the Kyiv Post, the loan would carry a 20 year maturity period and an annual interest rate of 2%. The Ukrainian Government issued a sovereign guarantee in support of the loan. The total cost of the project is $2 billion USD in total with 85% of the funding to come from Chinese financial institutions and the other 15% to come from the city of Kyiv. In 2017, the construction contract was awarded to a Chinese consortium made up of Chinese Pacific Construction Group and China Railway International Group as a part of China's larger Belt and Road Initiative. On November 12, 2018, China Railway International Group (CRIG) reportedly completed a preliminary project feasibility study. The project was originally slated to commence in 2018 and take 4 years to complete; however, the current status of the loan and the progress of the project are unknown.

Additional details

This project is also known as Fourth Metro Line in Kiev Project. The Ukrainian project title is будівництва четвертої лінії метро у Києві.

Number of official sources

1

Number of total sources

16