European Bank for Reconstruction and Development allotted Ukrzaliznytsia a EUR 150 million loan for the electrification of 253 km railway line between Dolynska, Mykolaiv and Kolosivka, in south Ukraine. The EBRD financing will be split in two tranches. The first one, of EUR 124.5 million will be delivered for the electrification of Dolynska-Mykolaiv railway line (148 km), double tracking of the single-track sections on the line, and construction of a high voltage line. The tranche 2, up to EUR 25.5 million, will finance the electrification of Mykolaiv-Kolosivka railway line (105 km).
The total project cost is estimated to be in the amount of up to EUR 367.9 million, expected to be cofinanced by the European Investment Bank in an amount equal to the EBRD loan, the company’s own contribution and grant funding of the technical cooperation assignments.
The main purpose of the project is to improve the efficiency of the railway operations and to support the ongoing railway reform process through providing financing to electrify and double track the railway line, thus reducing energy consumption and removing the capacity bottleneck at three of Ukraine’s main gateways for grain exports; providing institutional strengthening support to the Ukrainian Railways and the Government of Ukraine to implement best corporate governance practices, and providing further support to reduce energy consumption in the rail sector in Ukraine.
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