📋 Tender Overview
Location: Ukraine
Project number: 55499
Business sector: Transport
Notice type: State
Environmental category: B
EBRD Finance Summary: EUR 300,000,000.00
Total Project Cost: EUR 478,285,714.29
Project Description
Provison of a sovereign guaranteed loan of up to EUR 300 million, to provide emergency capex financing to the JSC "Ukrainian Railways" (the "Company" or "UZ"). The loan may be tranched into a committed tranche of up to EUR 120 million, and uncommitted tranches of up to EUR 180 million in aggregate, reflecting the implementation timeline. Tenor and grace period: the loan tenor will be up to 18 years, including an up to 4-year grace period on principal repayments.
The Project will be supported by a parallel investment grant of up to USD 195 million from the Government of the United States, administered by the World Bank through the Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund (URTF) as part of the Repairing Essential Logistics Infrastructure & Network Connectivity (RELINC) Project.
Project Objectives
A significant number of the Company's electric locomotives are already reaching the end of their extended service life and will be decommissioned in the near future due to wear and tear and metal degradation, thus reducing the Company's ability to cope with market demand for railway transportation services. In the current crisis environment triggered by the war on Ukraine, the emergency capex program will support addressing the Company's critical needs to renew its operating fleet and ensure continuity of its operations.
Transition Impact
ETI score: 78
The Project will contribute to the following Transition Impact qualities:
Primary - Competitive - as addition of the new fleet will improve the Company's operational and financial results, replacing old and obsolete units with new, more efficient ones.
Secondary - Green - as new electric locomotives will replace the existing old, less energy efficient locomotives.
