Export-Import Bank of the United States (Exim US Bank) for the first time has approved a direct long-term loan programme for the renewal of Ukrzaliznytsia locomotive fleet by purchasing 40 diesel locomotives manufactured by Wabtec.
The financing from the U.S. Exim Bank is expected to amount USD 156 million for a period of 15 years and this decision allows the negotiations between Ukrzaliznytsia and Wabtec to be completed and the locomotive procurement procedure to begin.
“We know what role the railway played for the protection of Ukraine and the Ukrainian people. I am very proud of the employees of the Ukrainian railway, who did everything to save lives and maintain the multi-thousand railway network. In any case, you are worthy of support, and this agreement, which will be further implemented at the legislative level, is something we can do together, when the efforts of the government and the private sector are directed in the same direction,” the US Special Representative for the Economic Recovery of Ukraine, Penny Pritzker said.
The announcement was made during a meeting in Kyiv attended by the US Special Representative for the Economic Recovery of Ukraine, Penny Pritzker, the President and Chairman of the Board of Directors of Export-Import Bank of the United States, Reta Jo Lewis, the Ambassador Extraordinary and Plenipotentiary of the USA to Ukraine Bridget Brink, the Deputy Prime Minister for Restoration of Ukraine – Minister for Communities, Territories and Infrastructure Development of Ukraine, Oleksandr Kubrakov, and the Chairman of the Board of Ukrzaliznytsia Yevhen Lyashchenko.
“Every cent of aid for Ukrainian Railways is not only an investment in our logistics capacity and infrastructure development. This is a contribution to the defense capability and stability of our state. Ukrzaliznytsia is the first Ukrainian state-owned company to receive financing from the US Eximbank. This agreement is a continuation of the US state policy of supporting Ukraine in a difficult period, on the other hand, it is a recognition of the strategic role of Ukrzaliznytsia in providing passenger and freight rail transport, including the evacuation of the population from the front-line zone and close to the combat zone, maintaining food security thanks to ensuring the export of grain. Ukrzaliznytsia has a successful experience of operating Wabtec diesel locomotives, the purchase of which at one time strengthened the company’s capabilities,” Oleksandr Kubrakov, said.
“Our goal is to develop export-import activity. Ukrainian-American cooperation is getting stronger, our government is absolutely convinced that Ukraine is the place where investments should be. This agreement is a symbol that recovery processes in Ukraine are starting, despite the conflict, and it will be a win-win for both countries, because Ukraine will receive critically needed equipment, and at the same time, this project provides an impetus for our private sector to increasingly was involved in the recovery in Ukraine,” the chairman of Exim Bank said.
Under this project, Ukrzaliznytsia plans to involve a wide range of leading Ukrainian companies in the repair production, which will provide the company with the necessary amount of equipment for repairs of mainline freight diesel locomotives of the TE33АС series manufactured by Wabtec Corporation.
For the renewal of Ukrzaliznytsia locomotive fleet in 2022 a MoU has been signed with Alstom covering the delivery of 130 Prima T8 electric locomotives worth EUR 900 million, with France co-financing the contract. The Ukrainian company is operating 30 Evolution Series locomotives and in 2020 an agreement was signed with Wabtec for the supply of 40 electric locomotives and the provision of maintenance services for 70 units.
Share on:
