Business news from Ukraine

Business news from Ukraine

UZ to receive EUR 43 mln for European railways development projects

24 July , 2024  

Ukrzaliznytsia (UZ) will receive almost EUR43 million under the European Union’s Connecting Europe Facility (CEF) program.
According to the company’s press service on Tuesday, the program’s coordinating committee approved the company’s project application on July 16.
“Ukraine continues its European integration path and has systematic support from the EU. Thus, for the second year in a row, the CEF has been allocating funds for the implementation of strategic infrastructure projects aimed at developing the European gauge in Ukraine, so that we can open new passenger routes and increase the country’s transit potential,” the statement quoted Yevhen Lyashchenko, Chairman of the Board of UZ, as saying.
It is noted that the EUR42.95 million provided under the CEF mechanism will be used to implement a project to improve the railway network and build a 1435 mm gauge to ensure technological compatibility and increase the capacity of the railway infrastructure.
The total project budget is EUR85.91 million.
A feature of the CEF program is co-financing for project implementation in the amount of 50%. The Ukrainian side must provide a similar amount.
UZ clarified that within the framework of the project to improve the railway network and develop a 1435 mm gauge, it is planned to design the reconstruction of railway facilities with the introduction of a 1435 mm gauge on the Chop-Lviv section, as well as design the reconstruction of railway facilities with the construction of a 1435 mm gauge and electrification on the Lviv-Chernivtsi-Vadul-Siret-state border section.
It is also planned to develop a strategy for the reconstruction of the Lviv railway junction, taking into account the prospects for expanding the 1435 mm gauge railway network of the Trans-European Transport Network (TEN-T) in Ukraine; design and construction of a 1435 mm gauge with electrification on the Pavlovo-2/Mativtse-Uzhhorod section and electrification of the 1435 mm gauge on the Chop-Uzhhorod section.
The costs of the TSI compliance examination of the above projects, as well as the Kovel-Yahodyn – state border and Medyka/Mostiska II – Lviv (Sknyliv) sections are provided for, UZ said.
The CEF (Connecting Europe Facility) is a European Union fund established in 2014 to invest in transport, energy, digital and telecommunications projects. It is the main instrument for financing the development of TEN-T.
Earlier it was reported that Ukraine would receive a grant of EUR 53 million for the implementation of four projects under the CEF program.

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