Wedoany.com Report-Dec 26, The current steps are aimed at maintaining transport capacity for both freight and passengers, as well as supporting broader infrastructure needs throughout Ukraine.

Ukrzaliznytsia (UZ) has secured loan agreements with the European Bank for Reconstruction and Development (EBRD), backed by state guarantees, totalling 480 million euros. These arrangements aim to introduce new electric locomotives into the national operator’s ageing fleet and to create gas-based power generation capacity on its own sites.

The funding for the locomotive procurement consists of up to 300 million euros and is set for repayment over 18 years with an interest rate of EURIBOR plus one percent. In parallel, a 190 million-dollar URTF investment grant, overseen by the World Bank, will contribute toward this project under the “Restoration of Core Logistics Infrastructure and Network Connectivity” (RELINC) initiative.

Ukrzaliznytsia recently opened tender offers for the supply of 80 electric freight locomotives, and technical assessments of these bids are underway.

In addition to the locomotive component, EBRD will provide 180 million euros to support the installation of gas-fired power generation, arranged for a 10-year repayment at the same interest margin. About 65 million euros in grant funds, including an already confirmed 12 million-euro grant from the UK Government via the Energy Community, will be used for this part of the project. The planned capacity of approximately 255 MW is intended to strengthen operational reliability, allowing rail operations to continue in challenging conditions.

The EBRD’s involvement follows previous financial efforts to sustain Ukrzaliznytsia’s operations during ongoing conflict-related challenges, including rail connectivity upgrades with the European Union and emergency liquidity support.