Business news from Ukraine

“Ukrzaliznytsia” plans to purchase up to 80 modern powerful electric locomotives

25 May , 2024  

Ukrzaliznytsia JSC (UZ) plans to purchase up to 80 modern powerful electric locomotives with funds from the European Bank for Reconstruction and Development (EBRD) and the World Bank’s RELINC project.

According to the company’s press service on Friday, the relevant tender was published on the EBRD portal. Applications will be accepted until July 22, 2024.

“According to the terms of the tender, the participants must submit two versions of the tender proposal – for the supply of 30 or 80 locomotives, depending on the availability of funding,” Ukrzaliznytsia said in a statement.

The expected total cost of the project is EUR400 million. Part of this amount – EUR 300 million – will be allocated by the EBRD under a guaranteed sovereign loan. In parallel, the project will be supported by an investment grant of $190 million from the US government, managed by the World Bank (WB) through the Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund (URTF) under the WB-managed Restoration of Critical Logistics Infrastructure and Network Connectivity (RELINC) project.

“The tender requirements stipulate that the winner, in addition to supplying locomotives, must create conditions for the maintenance and warranty repair of new traction rolling stock in Ukraine,” Ukrzaliznytsia said.

The company called this an evolutionary step, noting that it is not only purchasing equipment but also changing its approach to its maintenance.

“It will also allow us to localize the capacities for maintenance and repair of locomotives in Ukraine as much as possible,” Ukrzaliznytsia emphasized.

Earlier it was reported that the Export-Import Bank of the United States approved a decision on loan financing for the renewal of the traction rolling stock fleet with 40 diesel locomotives manufactured by Wabtec. The bank is expected to provide financing in the amount of $156 million for a period of 15 years.