The proposed project will enable the Company to finance the acquisition of general purpose freight wagons, an integral part of a multi-staged Rolling Stock Renewal Programme, to renovate Ukraine Railways’ ageing fleet, which has become a critical bottleneck of the country’s transport system as the shortage and poor state of the freight rolling stock is now a potential threat to continued growth of the national economy. It is expected that the European Investment Bank will provide parallel debt financing.
Project will support the implementation of the approved commercialisation strategy and improve the quality and safety of its operations to meet growing demand. The areas of reform are wide-ranging and include unbundling and commercialisation of the company’s various business units. The project will also include the transfer and dispersion of skills in the areas of fleet management planning and practices and the introduction of improved managerial skills in the operation and management of Ukrzaliznytsia’s rolling stock through the adoption of the “Fleet Management Programme”.
The client: Ukrzaliznytsia - The State Administration for Railway Transport of Ukraine, wholly-owned by the state of Ukraine.
EBRD finance: USD 385 million senior debt facility to be structured as A/B Loan.
Total project cost: Up to USD 750 million |
