Project description
and objectives:
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The proposed project will provide further assistance in operational modernisation of Ukraine Railways (“Ukrzaliznytsia“ or “UZ”), and enhance institutional strengthening of UZ through assistance with developing a new corporate structure. The Project objectives are to: (i) replace old-style night sleeper services on medium distance inter-city routes with fast day passenger services which will provide much better service to customers and a higher return to UZ; (ii) eliminate a critical bottleneck on the pan-European corridor V with the construction of the Beskyd Tunnel; (iii) continue with the track rehabilitation programme that commenced with the proceeds of the first loan.
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Transition
impact:
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Transition impact would stem from: (i) UZ conversion into a joint-stock company; (ii) new legislation and introduction of amendments to existing legislation to allow UZ’s corporatisation process; (iii) implementation of UZ’s Railway Reform Policy; (iv) introduction of efficient procurement methods for equipment and rolling stock purchase.
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The client:
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Ukrzaliznytsia (or “UZ”) which is 100% owned by the State. UZ's Director General is also the Minister of Transport.
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EBRD
finance:
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The Bank would extend a loan of US$ 120 million to UZ to finance (i) the purchase of passenger carriages; (ii) the purchase of track machinery; (iii) the construction of the Beskyd tunnel and (iv) consultancy services.
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Total project cost:
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Total project cost is US$ 289 million including local contributions and estimated taxes and duties to be paid by the borrower (EUR 289 million).
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Environmental impact:
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Classified IEE, requiring an Initial Environmental Examination (IEE). Each of the three sub-projects will need to undergo an individual environmental due diligence. Two of these: the purchase of new passenger carriages and modern track machinery; have been classified B/0 requiring an environmental analysis. Due to the limited information currently available on the third sub-project, the construction of a new double track Beskyd tunnel an IEE will be carried out to determine the Bank's environmental due diligence requirements. In case IEE identifies sensitive environmental issues, this sub-project may be classified "A", requiring a full environmental impact assessment and public consultation as per Ukrainian law and the Bank's policies and procedures. A summary environmental analysis of each of the sub-projects will be annexed to this document as soon as the environmental investigations have been completed.
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Technical
cooperation:
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Technical Co-operation funding will include:
Beskyd Tunnel Feasibility Study – engineering assessment of the proposed investment and preparation of ToR for geological survey, financed by Austrian bilateral funds – EUR 60,000 (in completion);
Project preparation - geological survey to serve as basis for later tunnel design and construction of the Beskyd tunnel, expected to be financed by bilateral grant funds – estimated EUR 200,000;
Institutional strengthening and implementation – drafting new legislation to allow corporatisation and implementation of Railway Reform Policy, environmental measures, expected to be financed by EU-TACIS – estimated EUR 800,000.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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EBRD contact:
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Mark Magaletsky, Operation Leader: magaletm@ebrd.com
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Procurement or tendering
opportunities:
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Visit EBRD Procurement
Enquiries: Tel: +44 20 7338 6794; Fax: +44 20 7338 7472, Email: procurement@ebrd.com
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General
enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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