The EBRD will offer a 15-year sovereign-guaranteed loan of up to EUR 150 million to Ukrainian Railways for the the electrification and modernisation of a 253 km stretch of railway line in southern Ukraine, which is linking the country’s major industrial and agricultural areas with the key Black Sea ports of Odessa and Mykolaiv.
The loan will help electrify and connect the Dolynska-Mykolaiv-Kolosivka railway line to the high voltage grid, install a second track on single track sections in the Dolynska-Mykolaiv railway line and increase overall throughput capacity and efficiency of the railway operations. It will be co-financed by a similar-sized loan from the European Investment Bank and supported by grant funding of EUR 6.8 million provided by the EU’s Neighbourhood Investment Facility.
“By supporting this project, the EBRD is not only promoting an efficient and ecologically friendly means of transportation but is contributing to the development of best international corporate governance standards at UZ,” EBRD Country Director for Ukraine Sevki Acuner said.
The project will lead to significant reductions of CO2 emissions of over 140,000 tonnes a year.
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