The Cabinet of Ministers has completed negotiations with GE Transportation (United States), and an agreement on strategic partnership on implementation of a seven-year program for upgrade of the rolling stock of the Ukrainian Railways public joint-stock company (Ukrzaliznytsia) will be signed by the end of this year.
The Cabinet of Ministers announced on Monday, December 4, that this agreement was reached during a meeting between Prime Minister Volodymyr Groysman with the management of GE Transportation.
"I am glad that we have finalized our agreements and that we have agreed that all the documents should be approved and signed by the end of the year. The government will facilitate this process," Groysman said.
The active phase of negotiations on the project took place over the past three months. The management of Ukrzaliznytsia conducted the negotiations with the support of the UkraineInvest investment promotion office.
The two parties agreed during the negotiations that the level of localization of production would increase to 40% during implementation of all the agreements. In addition, it was agreed that products that are manufactured in Ukraine on the basis of GE technologies and in compliance with GE standards would be used in GE Transportation’s projects in other countries.
Implementation of the first phase of the project will involve supply of 30 locomotives that contain Ukrainian parts and are serviceable in Ukraine to Ukrzaliznytsia as early as September next year.
GE Transportation has confirmed its willingness to provide technology to Ukraine, train specialists, and explore opportunities for access to credit resources throughout the course of the project.
As reported, the five-year plan for development of PJSC Ukrzaliznytsia provides for modernization and purchase of 270 locomotives.