The Verkhovna Rada has ratified a financial agreement with the European Investment Bank (EIB) on development of the infrastructure of the Ukrainian Railways joint-stock company (Ukrzaliznytsia), which provides for granting a loan of EUR 150 million for financing modernization and expansion of the Dolynska-Mykolaiv-Kolosovka railway line.
Development of this railway corridor, including electrification of rail tracks, will increase the capacity of rail transport to the Mykolaiv and Odesa ports.
The relevant draft law was approved by 234 votes at a session on Wednesday, October 3. This agreement was signed in Brussels on 19 December 2016.
Development of the Dolynska-Mykolaiv-Kolosovka railway line will increase the speed of freight trains by 20-25%, which will reduce the time of cargo delivery and reduce the operating costs associated with operation of train.
The Cabinet of Ministers decree No. 7 of 31 January 2018 approved the project “Reconstruction of the Dolynska-Mykolaiv-Kolosovka Railway Line to Increase in the Capacity of the Znamianka-Dolynska-Mykolaiv Line.”
The European Bank for Reconstruction and Development (EBRD) is expected to provide an additional EUR 150 million for this project.
As the CFTS portal previously reported, the EBRD loan is expected to be divided into two tranches: up to EUR 124.5 million will be spent on electrification, the laying of a second track, and construction of a high-voltage line on the Dolynska-Mykolaiv railway line and up to EUR 25.5 million on electrification of the Mykolaiv-Kolosovka line.
The works must be completed before 2021.