The FINANCIAL — The EBRD is contributing to the increased efficiency of the Ukrainian railways (UZ) by supporting 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.
A 15-year sovereign-guaranteed loan of up to €150 million to UZ 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, therefore, 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 €6.8 million provided by the EU’s Neighbourhood Investment Facility.
Once implemented, the project will lead to significant reductions of CO2 emissions of over 140,000 tonnes a year, according to the EBRD.
The project will also promote better corporate governance at UZ through the preparation and implementation of the Corporate Governance Action Plan. Other important institutional and efficiency development elements of the project are the Energy Efficiency Investment Plan and the Energy Management Strategy, which will be implemented during the course of the project.
EBRD Country Director for Ukraine Sevki Acuner said: “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.”
All contracts under the project financed by the EBRD will be procured by open tender in strict compliance with the EBRD’s Procurement Policies and Rules. This will provide equal opportunities for eligible bidders and contribute to the transparency and cost efficiency of the investment programme.
The EBRD is the largest international financial investor in Ukraine. To date, the Bank has made a cumulative commitment of almost €11.7 billion through 390 projects since the start of its operations in the country in 1993.