09 June 2023, Friday, 22:20 246

EBRD Will Provide Ukrzaliznytsia With EUR 200 Million Loan To Modernize Railway Communication With EU

Редактор: Tetiana Herasimova

The European Bank for Reconstruction and Development (EBRD) will provide Ukrzaliznytsia (UZ) with a loan of EUR 200 million to modernize the country's railway connection with the European Union in the west of the country.

It was stated in the message of the EBRD, Ukrainian News Agency reports.

"The EBRD will provide EUR 200 million of credit to UZ to modernize the country's railway connection with the European Union in the west of the country. The loan adds EUR 150 million of emergency liquidity financing for the UZ last year, which was aimed at helping Ukraine maintain train traffic," the statement said.

It is noted that this sovereign loan of EUR 100 million for emergency financing of capital expenditures and EUR 100 million for support of working capital - will reduce the consequences of the war, contributing to the expansion of cross-border capacity and improving railway communication with the EU.

"This will allow the UZ to continue to provide vital services to people and businesses, as well as restore key railway corridors on the border with the EU and purchase a moving warehouse. The EBRD distributes the risks of its investments in Ukraine with donors and shareholders. This loan should be guaranteed up to 50 percent, where EUR 60 million will come from the United States of America and EUR 40 million from the Netherlands. France and the European Union, through their European Sustainable Development Fund, have provided guarantees on the preliminary financing of the EBRD for the UZ," it was said.

In addition, it is expected that the project will be funded by an investment grant of up to EUR 10 million from bilateral or multilateral donors and will be aimed at covering investments in communication equipment, energy-efficient lighting and continuously access to several large railway stations, which meets the goals of the project on sustainability and inclusion.

As Ukrainian News Agency earlier reported, in September 2022, the European Bank for Reconstruction and Development additionally allocated EUR 98.5 million to maintain liquidity of Ukrzaliznytsia within the credit funds provided for the implementation of the electrification project of the Ukrainian railway.

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