Chernobyl, Ukraine, was the scene of the world's worst civilian nuclear power disaster in 1986.
"The EBRD contribution is a further step in efforts by the international community to make the Chernobyl site safe," the bank said in a news release.
The decision is in line with two key contracts signed in September 2007, using funds that are managed by the EBRD.
One contract is for the construction of the New Safe Confinement, a structure that will be built over Chernobyl's reactor 4. The second contract is for the completion of the Interim Storage Facility 2, a project to deal with spent fuel from reactors 1-3.
The New Safe Confinement will eventually cover the present shelter which was built after the 1986 accident and which is deteriorating. Substantial stabilization measures - funded by the Chernobyl Shelter Fund - have however reduced the risk of collapse considerably.
The grant by the EBRD, whose shareholders include 61 countries, is seen as a catalyst that will give additional momentum to Chernobyl funding from donor countries.
At their 2007 summit in Heiligendamm, Germany, G8 countries reaffirmed their commitments to making Chernobyl safe. However, funds are still not sufficient.
On April 26, 1986, reactor number four at the Chernobyl Nuclear Power Plant exploded, resulting in a critical nuclear meltdown.
Vast areas, mainly in the three then-Soviet republics of Ukraine, Belarus and Russia, were contaminated by the fallout of the explosion. More than 300,000 people were relocated after the accident. However, 5 million people still live in areas of Belarus, Russia and Ukraine classified as "contaminated" by radioactive elements.
Estimates by international bodies as to the number of deaths caused by the accident at Chernobyl vary dramatically. Fifty-six people were reported to have been killed at the scene of the disaster, and another 4,000 to have died of thyroid cancer shortly afterwards. Several million more people are believed to have been exposed to different degrees of radiation.
The disaster is thought to have released at least 100 times more radiation than the atom bombs dropped on the Japanese cities of Nagasaki and Hiroshima in WWII.
