Project Description
The project will finance the purchase of track maintenance machinery and track improvement materials for the major rail corridor between L'viv and Kiev.
The project will assist UZ by:
- improving maintenance on the Kyiv-L'viv rail line, UZ's main transport link to Europe;
- reducing life-cycle costs of track by modernising UZ's maintenance methods; and
- improving financial performance by aiding commercialisation measures.
Transition Impact
The investments will assist UZ to improve track maintenance. As a result UZ will be able to offer faster, more reliable rail freight transport services at lower cost; track maintenance costs will be reduced substantially. Policy reforms will promote improved financial performance, better management and commercialisation.
Phasing out the cross-subsidy from UZ's freight services to cover passenger losses will permit UZ to contain freight tariffs, making Ukraine's goods more competitive in the international market place. The project will help UZ to develop a commercialisation programme, to implement it through a rolling five-year business plan, and to plan for the commercialisation of UZ's non-core businesses, which could eventually lead to privatisation.
The Client
The client is the State Administration for Railway Transport of Ukraine (UZ), an entity wholly owned by the state.
EBRD Finance
Loan (sovereign guaranteed) of US$ 51.9 million (EUR 50 million) with a 15-year term.
Project Cost
US$ 110.9 million (EUR 96.2 million)
Environmental Impact
The project was categorised as B/0, requiring an environmental analysis. The investment was preceded by a pre-investment study, which developed an Environmental Action Plan (EAP). This identified environmental issues that must be addressed during project implementation. During the operation and maintenance phase, adequate provision will be made for disposal of hazardous and non-hazardous solid wastes, water run-offs and possible increased noise along the railway corridors. As a condition of the effectiveness of the project, UZ will need to approve an EAP satisfactory to the Bank.
Technical Cooperation
EU-Tacis (Bangkok Facility) has provided EUR 500,000 for project preparation and EUR 750,000 for project implementation. Further TC funding may be sought to assist UZ to improve its financial management and accounting systems.
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
General enquiries
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com
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
