The Export-Import Bank of the United States is returning to Ukraine, and one of the first programs that the bank is ready to finance is related to infrastructure. Ukraine’s Minister of Infrastructure Volodymyr Omelian announced this on Facebook, the CFTS portal reports.
"We discussed the conditions and timeframe for purchase of the next batch of at least 40 American locomotives for Ukrzaliznytsia with representatives of Wabtec and Eximbank today," Omelian wrote.
In comments to the CFTS portal, the minister said that the first locomotive deliveries would take place at the end of 2020 if everything went according to plan.
In addition, according to the head of the Ministry of Infrastructure, the possibility of the Export-Import Bank of the United States financing Ukrainian airlines to enable them to upgrade their fleets with modern aircraft was discussed separately.
“It would be good for our state budget to also make provision for supporting Ukrainian aviation if we want to maintain the pace of growth in this industry, provide Ukrainian airlines with competitive conditions for purchase and lease of new aircraft, and revive the aircraft manufacturing industry,” the minister said.
As the CFTS portal reported, on February 23, 2018, the General Electric company (United States) and the Ukrainian Railways joint-stock company (JSC Ukrzaliznytsia) signed a framework agreement for supply of up to 225 General Electric locomotives of the Evolution Series to Ukraine by 2034 and long-term maintenance of the locomotives. In addition, under the framework agreement, General Electric will modernize 75 old Ukrzaliznytsia locomotives. The contract has an estimated value of USD 1 billion.
Ukraine received 30 TE33AC diesel locomotives in the first phase of implementation of the framework agreement. The Kryukov Railcar Building Works, to which the locomotives were sent final assembly, delivered the last of these locomotives to Ukrzaliznytsia for operation on March 22, 2019. 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).
The deputy director of Ukrzaliznytsia’s locomotive department, Oleksandr Bohdanov, said in February this year Ukrzaliznytsia would like to purchase up to 70 freight diesel locomotives by 2025 (15 per year in the period of 2018-2020 and 5 per year in the period of 2021-2025) if it had the necessary funds.