The Ukrainian Ministry of Development of Communities, Territories, and Infrastructure, the Ukrainian Railways joint-stock company (JSC Ukrzaliznytsia), and the European Bank for Reconstruction and Development (EBRD) are beginning the implementation of the "Ukraine Railways Emergency Support" project, the CFTS portal reports.
The EUR-200-million project will provide funds for the restoration and modernization of railway infrastructure and the renewal of rolling stock.
The Guarantee Agreement on the implementation of the project was signed on 9 June by Ukraine’s Deputy Prime Minister for the Reconstruction/Minister of Community Development, Territories, and Infrastructure Oleksandr Kubrakov and the EBRD's Managing Director for Eastern Europe and the Caucasus Matteo Patrone.
"Given the restrictions imposed on the operations of Ukraine’s Black Sea ports by the aggressor, the Reconstruction Ministry is currently paying special attention to the development of road and rail logistics on Ukraine’s western borders. This primarily involves the modernization of the infrastructure and the renewal of the rolling stock. Thanks to the EBRD's financial support, we will be able to significantly accelerate this process and guarantee Ukrzaliznytsia’s uninterrupted operation in the short and medium term," Kubrakov said.
The "Ukraine Railways Emergency Support" project will be financed with a sovereign-guaranteed loan of up to EUR 200 million from the EBRD. These funds will be used to purchase materials to ensure the steady operation of railway corridors between Ukraine and the European Union, purchase locomotives, and provide the financial support necessary for Ukrzaliznytsia to provide steady transport operations.
The implementation of the project is scheduled to begin in July this year.
Ukrzaliznytsia and the EBRD have been cooperating for 25 years. The renewal of Ukrzaliznytsia's fleet of freight cars and the expansion of rail links with the European Union, including the construction of the Beskyd railway tunnel, have been financed with the support of the EBRD.
In total, the parties have implemented projects worth more than EUR 300 million during this period.
