The Ukrainian railway operator Ukrzaliznytsia will be able to receive 100 million euros in loan funds from the European Investment Bank (EIB) for the design, resumption of construction, modernization, development, repair of facilities, engineering and transport railway infrastructure, as well as the acquisition of fixed assets for development rail freight. The relevant resolution was adopted by the Cabinet of Ministers of Ukraine on September 1.
“The European Investment Bank and Ukraine signed an agreement to waive certain terms of the financial agreement for the project, which allows the allocation of funds in the amount of 100 million euros to provide a loan to Ukrzaliznytsia to ensure uninterrupted operation of railway transport,” the railway operator said in a statement.
The Ministry of Community Development, Territories and Infrastructure of Ukraine specified that the funds under the new budget program will be used for the construction, modernization and repair of railway infrastructure facilities, as well as for purchase of freight wagons and other means of transportation.
Recall that the EIB and Ukrzaliznytsia have signed an EU grant agreement in the amount of 6.7 million euros to meet the urgent needs of rail transport in Ukraine.
European investment bank is one of the largest creditors in Ukraine. To date, the portfolio of projects implemented by the EIB with the Ukrainian public, utilities and business sectors is more than 7 billion euros.