The European Bank for Reconstruction and Development has redistributed funding for railway needs
The European Bank for Reconstruction and Development has approved the reallocation of €130 million from a previously agreed loan to support the liquidity of Ukrzaliznytsia. The funds will be used for critical infrastructure repairs and ensuring uninterrupted transportation. This was reported by Delo.ua citing Mykola Kalashnyk, according to the portal PromPolitInform.
Amendments to the credit agreement regarding the “UZ Energy” project were signed during a meeting between the management of the state-owned company and EBRD President Odile Renaud-Basso. The total volume of the financial instrument is €180 million; however, most of these funds were previously earmarked exclusively for the development of distributed generation. Now, the company has received authorization to use €130 million for operational purposes and the restoration of damaged assets.
Operational needs of the railway
The decision to revise financing terms is driven by significant losses resulting from regular russian strikes on railway infrastructure. The constant need for repair work, combined with a decline in freight volumes, is exerting considerable pressure on the company’s financial position. It is expected that Ukrzaliznytsia will gain access to these credit resources within the coming weeks.
Self-generated electricity
Despite the reallocation of some funds, the project to build 200 MW of gas-fired generation continues with financial support from the United Kingdom and EU grants. Executing construction work in-house allows the railway to optimize expenses and direct credit funds toward other critical sectors. The parties also discussed potential financing for locomotive fleet modernization, given that russia has damaged hundreds of traction units since the beginning of the war.
International infrastructure cooperation
Beyond the rail sector, discussions with international partners covered the development of transport corridors and investments in the road network in collaboration with the Agency for Restoration. Particular attention was given to preparations for the heating season, including the development of distributed heat generation and the protection of strategic assets. Kyiv also plans to leverage EBRD expertise for implementing port concession projects in Odesa and Chornomorsk.
Photo: Delo.ua
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