JSC Ukrzaliznytsia (Kyiv) has made another payment on eurobonds in the amount of $150 million, head of the company Yevhen Kravtsov said on his Facebook page. He noted that in 2019 the company already paid off 60% of the principal amount ($300 million) on eurobonds raised in 2013. Ukrzaliznytsia intends to repay the remaining $200 million in the next two years.
“This is the second payment this year. We are paying on schedule,” Kravtsov added.
As reported, in March 2019 Ukrzaliznytsia repaid the first part of its $150 million eurobonds and paid coupon income on them, receiving funds for these purposes at Oschadbank and the State Agency of Ukraine for Infrastructure Projects.
The Ministry of Infrastructure intends to regain control over Ukrzaliznytsia, Minister of Infrastructure Vladyslav Krykliy has told reporters. “I have already initiated this issue to the prime minister. I think we will begin in the near future,” he said.
The minister noted that the necessary changes to the relevant provision on Ukrzaliznytsia are already being prepared and the transfer could take place in the near future.
“If the Ministry of Infrastructure is responsible for the transport strategy and infrastructure, it is logical that the railway as an integral part of this living organism should go back [under the control of the Ministry of Infrastructure],” the expert said.
The European Bank for Reconstruction and Development (EBRD) will finance the modernization of infrastructure of JSC Ukrzaliznytsia via the purchase of eurobonds worth almost $100 million, Ukrzaliznytsia Board Chairman Yevhen Kravtsov wrote on his Facebook page. “Today we signed the framework agreement: the EBRD finances the Ukrzaliznytsia infrastructure project via an additional issue of eurobonds. We received up to $100 million exclusively for infrastructure modernization. Against the background of permanent headline-grabbing tenders for the purchase of anchoring beams, switches this is a signal to the market: tenders will be held in accordance with EBRD rules,” Kravtsov wrote.
He said that the funds raised will go exclusively for the purchase of materials. Ukrzaliznytsia will carry out the work on its own.
The head of Ukrzaliznytsia recalled that over the past two years, the company’s attention has been focused on updating the rolling stock and locomotive fleet.
“Now it is the turn of the railroad track. Firstly, it is safety, secondly, we will increase the throughput, and thirdly, it is a possibility of increasing speed in some sections for both freight and passenger trains, thereby reducing energy-consuming stops,” Kravtsov said.
He also thanked the EBRD and the new Cabinet of Ministers team for helping to implement this agreement.
JSC Ukrzaliznytsia (Kyiv) in several weeks will present a strategy for reforming procurement, Ukrzaliznytsia Board Chairman Yevhen Kravtsov has said.
“Everyone asks if a conversation has already taken place with the new head of the Ministry of Infrastructure of Ukraine Vladyslav Krykliy. Yes, and very detailed. I can already say about the priority steps. Ukrzaliznytsia has a green light to make order in procurements,” he wrote on his Facebook page.
According to him, in particular, Ukrzaliznytsia intends to create a public council on increasing transparency and procurement efficiency with the participation of representatives of anti-corruption nongovernmental organizations and the media.
In addition, Kravtsov said that Ukrzaliznytsia begins a comprehensive audit at the branch of the Center for the Provision of Production, where, according to him, the largest amount of procurement is made. In addition, an internal audit of the Service Center is ongoing.
“I am tired of reading media reports about obscure tenders and personally canceling them. Such a volume of procurement cannot be coordinated manually. It is good that we respond to signals from the public, but it is bad that we give them reasons [to make these signals],” he said.
A plan on restructuring of JSC Ukrzaliznytsia, which foresees division of the company into three operators (infrastructure, freight and passenger) and a production block, will be prepared by the end of 2019, Ukrzaliznytsia head Yevhen Kravtsov wrote on Facebook.
“We will fulfill the order of [President of Ukraine] Volodymyr Zelensky in time,” he said.
According to Kravtsov, a gradual plan would become a part of the implementation of the Ukrzaliznytsia’s strategy agreed with the Cabinet of Ministers and approved by the supervisory council in June 2019. After the plan is fulfilled and approved by the supervisory board, Ukrzaliznytsia will begin making certain steps under the control of the government, he added.
“[Infrastructure Minister] Vladyslav Krykliy, [Prime Minister] Oleksiy Honcharuk back European model. The main is that infrastructure remains under state regulation, when passenger and freight carriages are carried under the market conditions,” he said.
As reported, Ukrainian President Volodymyr Zelensky has instructed the Cabinet of Ministers of Ukraine to prepare a plan on restructuring of JSC Ukrzaliznytsia by the end of 2019.
The president appointed Honcharuk and Krykliy responsible for the preparation of the plan.
PJSC Ukrzaliznytsia in the first half of 2019 repaired 45 electric trains and 18 diesel trains at their depots, while six electric trains and one diesel train were overhauled.
As a press service of the enterprise reported on Wednesday, by the end of 2019 the Ukrzaliznytsia is going to repair another 50 electric train sets and 15 diesel train sets.
As reported, Ukrzaliznytsia plans to launch a pilot project to upgrade commuter trains in Zaporizhia and Dnipropetrovsk regions, asking Kyivpastrans to allocate UAH 500 million for their renewal.
