Ukraine has selected BNP Paribas to provide letters of credit (L/Cs) in a multi-million US dollar project to rehabilitate and replace deteriorated water supply, wastewater and solid waste systems.

The L/Cs will be used in the Urban Infrastructure Project (UIP), which is supported by the World Bank affiliated International Bank for Reconstruction and Development (IBRD).

Project implementation

BNP Paribas was selected by Ukraine's finance ministry, which issued a tender for a foreign bank to manage L/C business in the project.

The Ukrainian government and the World Bank started implementing the UIP in February 2009.

Infrastructure developments

The ambitious project is backed by an IBRD credit of US$140 million agreed in May 2008.

The project aims to improve institutional capacity to manage Ukraine's urban infrastructure, rehabilitate certain infrastructure and improve energy efficiency.

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