A 15-year sovereign-guaranteed loan of up to €150 million will be provided to Ukrainian Railways to help electrify and connect the Dolynska-Mykolaiv-Kolosivka railway line to the high voltage grid. It will also help to install a second track on single-track sections of the Dolynska-Mykolaiv railway line and therefore increase the overall throughput capacity and efficiency of the railway operations.
The loan will be provided by the European Bank for Reconstruction and Development. It will be co-financed by a similar-sized loan from the European Investment Bank and supported by grant funding of €6.8 million provided by the EU’s Neighbourhood Investment Facility.
Once implemented, the project will lead to significant reductions in CO2 emissions of over 140,000 tonnes per year.
The project will also promote better corporate governance at Ukrainian Railways through the preparation and implementation of the Corporate Governance Action Plan. Other important institutional and efficiency development elements of the project are the Energy Efficiency Investment Plan and the Energy Management Strategy, which will be implemented over the course of the project.