Odessa, Ukraine (PortSEurope) January 2, 2018 – The EBRD is to make a loan to Ukraine to increase efficiency of Ukrainian Railways (JSC Ukrzaliznytsya – UZ) by supporting the electrification and modernisation of a 253-kilometre stretch of a railway line in southern Ukraine, linking the country’s major industrial and agricultural areas with the key Black Sea ports of Odessa and Mykolaiv.
A 15-year sovereign-guaranteed loan of up to €150 million to UZ will help electrify and connect the Dolynska-Mykolaiv-Kolosivka railway line to the high voltage grid, install a second track on single track sections in the Dolynska-Mykolaiv railway line and, therefore, increase overall throughput capacity and efficiency of the railway operations. It will be co-financed by a similar-sized loan from the European Investment Bank and supported by grant funding of €6.8 million provided by the EU’s Neighbourhood Investment Fund.
Once implemented, the project will lead to significant, over 140,000 tonnes, annual reductions of CO2 emissions.
The project will also promote better corporate governance at UZ through the preparation and implementation of the Corporate Governance Action Plan. Other important institutional and efficiency development elements of the project are the Energy Efficiency Investment Plan and the Energy Management Strategy, which will be implemented during the course of the project.
EBRD Country Director for Ukraine Sevki Acuner said: “By supporting this project, the EBRD is not only promoting efficient and ecologically friendly means of transportation but is contributing to the development of best international corporate governance standards at UZ.”
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