GE Transportation and PJSC Ukrzaliznytsia have signed a 15-year framework agreement worth about $1 billion on partnership in the renewal and modernization of traction rolling stock.
“Its first stage envisages the delivery in the end of 2018 and the first quarter of 2019 of 30 GE TE33A cargo diesel locomotives with a localization level of 10% at the end of the warranty period (three years) and 7% at the time of accepting,” reads a press release of Ukrzaliznytsia.
Production of locomotives will start in early 2018 in the United States, and first deliveries are scheduled for this fall.
GE and Ukreximbank also signed a purchase and sale agreement estimated at $140 million (including VAT) for the delivery of the first 30 diesel locomotives. The state bank will then transfer diesel locomotives to Ukrzaliznytsia under the terms of financial leasing for seven years.
Ukreximbank board chairman Oleksandr Hrytsenko explained that the contract was signed under the guarantees of Citigroup.
Work on modernization will be held at Dnipropetrovsk Diesel Locomotive Repair Plant or at Lviv Locomotive Repair Plant, which are part of Ukrzaliznytsia.
The delivery of modernized diesel locomotives is scheduled for 2018-2021, localization of work of up to 40%, the cost of up to $110 million (excluding VAT).
