The Ukrainian Railways joint-stock company (Ukrzaliznytsia) has reached an agreement with the European Bank for Reconstruction and Development (EBRD) on the provision of an additional EUR 300 million for purchasing freight electric locomotives under the program for renewal of its locomotive fleet.

Ukrzaliznytsia announced this in a statement, the CFTS portal reports.

The relevant memorandum between Ukrzaliznytsia, the EBRD, and the Ukrainian Ministry of Development of Communities, Territories, and Infrastructure was signed in Berlin during the Ukraine Recovery Conference.

Previously, the allocation of USD 190 million to Ukrzaliznytsia under the World Bank's grant finance project "Repairing Essential Logistics Infrastructure & Network Connectivity" was confirmed.

"The issue of renewing the locomotive fleet for Ukrzaliznytsia is critical and extremely important. The collaboration between the World Bank and the EBRD is an example of how some of the largest international financial institutions have joined efforts to implement such a large-scale project. Acquiring new and high-tech electric locomotives will significantly enhance the efficiency of freight transportation," said Yevhen Liaschenko, the board chairman of Ukrzaliznytsia.

The parties also agreed to conduct a pre-investment technical, environmental, social, financial, and economic analysis of the project.

Ukrzaliznytsia plans to purchase up to 80 electric locomotives under the RELINC grant finance project administered by the World Bank. The relevant tender has already been published on the EBRD’s Client e-Procurement Portal.

The tender requirements stipulate that the winner, in addition to supplying the locomotives, must establish conditions for the maintenance and warranty repair of the new traction rolling stock within Ukraine.

"This is an evolutionary step in the approach to fleet renewal, as the company is not only purchasing equipment but also changing its approach to maintenance. It will also allow us to localize the locomotive maintenance and repair facilities in Ukraine as much as possible," Ukrzaliznytsia said.

As reported previously, Ukrzaliznytsia announced a tender for the supply of electric locomotives in May 2024. Depending on funding availability, it planned to purchase 30 or 80 electric locomotives.

According to the tender documentation, the potential supplier must develop and offer Ukrzaliznytsia 80 mainline electric locomotives for dual (AC/DC) supply voltage, including 25 kV, and a minimum operating speed of 120 km/h. Additionally, the supplier must train Ukrzaliznytsia personnel to operate the new locomotives.

Furthermore, the tender documentation specified that tender participants must submit two versions of their tender proposal: one for 30 locomotives and one for 80 locomotives. Depending on the availability of funding, the contract will be awarded to the participant that offers the most favorable proposal, as follows:

- 80 locomotives under two separate contracts for 30 and 50 locomotives, which a World Bank grant and an EBRD loan will finance;

- 30 locomotives under one contract, to be financed only with funds from the World Bank.