The draft letter from the Ukrainian government to the government of the Republic of Korea regarding the provision of a loan for the implementation of the public investment project “Purchase of 20 Korean-made high-speed electric trains” was approved by the Cabinet of Ministers at its meeting on September 10.
“The signing of the letter will ensure the purchase of 20 high-speed electric trains manufactured in Korea with a preferential loan from the Economic Development and Cooperation Fund (EDCF) to meet the needs of Ukrzaliznytsia JSC in interregional and international passenger transportation,” said Taras Melnychuk, representative of the Cabinet of Ministers in the Verkhovna Rada, on Telegram.
The Verkhovna Rada ratified the Framework Agreement between the governments of Ukraine and the Republic of Korea on loans from the Economic Development and Cooperation Fund for 2024-2029, which opens up the possibility for Ukrzaliznytsia to purchase another 20 Intercity+ class electric trains.
As reported, in August last year, the Verkhovna Rada ratified the Framework Agreement between the governments of Ukraine and the Republic of Korea on loans from the EDCF for 2024-2029, which opens up the possibility for Ukrzaliznytsia (UZ) to purchase another 20 Intercity+ class electric trains manufactured by Hyundai Rotem, in addition to the 10 that were purchased before Euro 2012.
At that time, it was noted that the next steps would include agreeing on the details of the project and the agreement at the level of the Cabinet of Ministers and the final signing of the agreement. According to preliminary agreements, the total cost of the program will be about $450 million, including train maintenance for five years. The trains can be delivered within 18-24 months after the agreement is signed.
According to UZ, the loan terms are favorable given the critical social component of the project (total term of up to 40 years, with principal repayment beginning after the first 10 years). “This is an additional opportunity for 6 million passengers per year to travel, which will meet the current demand for daytime high-speed traffic,” commented Yevgen Lyashchenko, who was the chairman of the company’s board at the time, on the possible purchase.
In August this year, Ukrzaliznytsia announced plans to increase the share of daytime high-speed traffic to 30% in three years and to 40% in five years, while currently it averages 12-15%. An important part of their implementation is the purchase of 20 new Hyundai electric trains.
Later this month, one of the 10 Hyundai trains was taken out of service by a Russian strike.
