EBRD: Allocation of an Additional €300 Million for the Purchase of Freight Electric Locomotives

JSC “Ukrzaliznytsia” (UZ) has signed an agreement with the European Bank for Reconstruction and Development (EBRD) for the allocation of an additional €300 million for the purchase of freight electric locomotives, this is reported by the railway transport news portal Railway Supply.

The memorandum was signed in Berlin during the Ukraine Recovery Conference with the participation of representatives from UZ, EBRD, and the Ministry of Development of Communities, Territories, and Infrastructure of Ukraine.

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This step continues efforts to modernize the country’s rail transport.

Previously, under the World Bank’s grant project “Restoration of Critical Logistics Infrastructure and Network Connectivity (RELINC),” UZ had already confirmed the allocation of $190 million.

UZ Chairman Yevhen Lyashchenko emphasized that updating the locomotive fleet is critically important for the company.

The new high-tech electric locomotives will significantly increase the efficiency of freight transport.

Lyashchenko noted that the cooperation between the World Bank and EBRD is an example of how international financial institutions can join efforts to implement large-scale infrastructure projects.

In addition to the allocation of funds, the parties agreed to conduct a pre-investment analysis of the project, including technical, environmental, social, financial, and economic aspects.

This ensures a comprehensive approach to the modernization of rail transport, taking into account all possible risks and benefits.

The project plans to acquire up to 80 modern freight electric locomotives.

The corresponding procurements have already been published on the EBRD tender portal.

The tender conditions stipulate that the winner must not only supply the locomotives but also establish facilities in Ukraine for their maintenance and warranty repairs.

This means that the new traction rolling stock will be operated with maximum efficiency and reliability.

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The “Restoration of Critical Logistics Infrastructure and Network Connectivity (RELINC)” project is key to improving Ukraine’s transport infrastructure.

It aims to restore and develop logistics networks that were damaged or destroyed due to conflict and economic difficulties in recent years.

Restoring infrastructure is essential for the country’s economic growth and stability.

The additional financing from the EBRD will accelerate the modernization process and ensure the timely delivery of new electric locomotives.

This, in turn, will enhance the competitiveness of Ukrainian railways in the international transport services market.

Thus, the agreement with the EBRD and the continuation of cooperation with the World Bank open new prospects for JSC “Ukrzaliznytsia” and the entire transport sector of Ukraine.

The implementation of the project will contribute to the improvement of logistics infrastructure, increased efficiency of freight transport, and the creation of new jobs.

In the long term, this will lead to significant economic benefits and strengthen Ukraine’s position on the international stage.

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