UKRAINE RAILWAYS: FAST PASSENGER TRAINS PROJECT

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 14849

Status Complete

Location

Ukraine

Business Sector

Transport

Notice Type

State

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 14849

Status Complete

Location

Ukraine

Business Sector

Transport

Notice Type

State

Environmental Category

Approval Date

22 Jun 2004

Disclosure date

04 Feb 2003

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

The proposed project will provide further assistance in operational modernisation of Ukraine Railways (“Ukrzaliznytsia“ or “UZ”), and enhance institutional strengthening of UZ through assistance with developing a new corporate structure. The Project objectives are to: (i) replace old-style night sleeper services on medium distance inter-city routes with fast day passenger services which will provide much better service to customers and a higher return to UZ; (ii) eliminate a critical bottleneck on the pan-European corridor V with the construction of the Beskyd Tunnel; (iii) continue with the track rehabilitation programme that commenced with the proceeds of the first loan.

Transition Impact

Transition impact would stem from: (i) UZ conversion into a joint-stock company; (ii) new legislation and introduction of amendments to existing legislation to allow UZ’s corporatisation process; (iii) implementation of UZ’s Railway Reform Policy; (iv) introduction of efficient procurement methods for equipment and rolling stock purchase.

The Client

Ukrzaliznytsia (or “UZ”) which is 100% owned by the State. UZ's Director General is also the Minister of Transport.

EBRD Finance

The Bank would extend a loan of US$ 120 million to UZ to finance (i) the purchase of passenger carriages; (ii) the purchase of track machinery; (iii) the construction of the Beskyd tunnel and (iv) consultancy services.

Project Cost

Total project cost is US$ 289 million including local contributions and estimated taxes and duties to be paid by the borrower (EUR 289 million).

Environmental Impact

Classified IEE, requiring an Initial Environmental Examination (IEE). Each of the three sub-projects will need to undergo an individual environmental due diligence. Two of these: the purchase of new passenger carriages and modern track machinery; have been classified B/0 requiring an environmental analysis. Due to the limited information currently available on the third sub-project, the construction of a new double track Beskyd tunnel an IEE will be carried out to determine the Bank's environmental due diligence requirements. In case IEE identifies sensitive environmental issues, this sub-project may be classified "A", requiring a full environmental impact assessment and public consultation as per Ukrainian law and the Bank's policies and procedures. A summary environmental analysis of each of the sub-projects will be annexed to this document as soon as the environmental investigations have been completed.

Technical Cooperation

Technical Co-operation funding will include:

Beskyd Tunnel Feasibility Study – engineering assessment of the proposed investment and preparation of ToR for geological survey, financed by Austrian bilateral funds – EUR 60,000 (in completion);

Project preparation - geological survey to serve as basis for later tunnel design and construction of the Beskyd tunnel, expected to be financed by bilateral grant funds – estimated EUR 200,000;

Institutional strengthening and implementation – drafting new legislation to allow corporatisation and implementation of Railway Reform Policy, environmental measures, expected to be financed by EU-TACIS – estimated EUR 800,000.

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

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Tel: +44 20 7338 7168
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Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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