The Ukrainian Railways joint-stock company (JSC Ukrzaliznytsia) has allocated UAH 1,815 million for purchase of diesel locomotives in its draft financial plan for 2020.
The draft document provides for using credits for purchase the diesel locomotives, the CFTS portal reports.
In addition, JSC Ukrzaliznytsia plans to finance upgrade of its electric trains with credits. However, the company did not specify the amount of credit that will be used for this.
As the CFTS portal reported, in February 2018, the General Electric company (United States) and JSC Ukrzaliznytsia signed a framework agreement for supply of up to 225 General Electric locomotives of the Evolution Series to Ukraine by 2034. The cost of the first batch of 30 diesel locomotives is estimated at USD 140 million (including VAT). The locomotives were purchased through the Ukrainian Export-Import Bank (Ukreximbank) on financial leasing terms and with guarantees from City Bank (United States).
Assuming that JSC Ukrzaliznytsia’s financial plan provides for purchase of a new batch of American-made diesel locomotives and comparing the cost with the cost of the first batch, then it can be assumed that about 15 more locomotives can be bought.
Oleksandr Bohdanov, the deputy director of JSC Ukrzaliznytsia’s locomotive department, said in February this year that Ukrzaliznytsia would like to purchase up to 70 freight locomotives by 2025 (15 per year in the period of 2018-2020 and 5 per year in the period of 2021-2025) if funds were available.
In summer 2019, there were statements about possible purchase of 40 locomotives from Wabtec (United States). The United States’ Export-Import Bank was supposed with the involvement in the financing of this transaction.
