Home / EMEA / EIB and EBRD will sign loan agreement with Ukraine for the new Beskid Tunnel railway tunnel

EIB and EBRD will sign loan agreement with Ukraine for the new Beskid Tunnel railway tunnel

During the meeting with the Ukrainian delegation headed by the Minister of Finance of Ukraine, Oleksandr Shlapak, representatives of the European Investment Bank (EIB) have confirmed intention to double its annual limits on Ukraine.

“There are 9 development projects on the negotiating table, but bankers show their willingness to see much more energy and infrastructure sphere projects than are available in the discussion portfolio at present” stated the Head of State Agency for Investment and National Projects of Ukraine, Serhiy Yevtushenko.

According to the agency, next week EIB and EBRD will sign a loan agreement on the new Beskid Tunnel tunnel funding with the Ukrainian side.

Beskid tunnelBeskid Tunnel tunnel is second longest railway tunnel in Ukraine and had a strategic importance since more than 40% of transit goods to Western and Central Europe are transported on the route this route. After the construction of the new tunnel, the capacity will increase from 47 to 100 pairs of trains per day, and the speed of trains through the tunnel will rise from 40 to 60 km/h.

In December 2013, the Ministry of Finance assessed the report of financial status of Ukrainian Railways and considered it satisfactory to be given a loan of 55 million Euros by the European Investment Bank, provided that Ukrainian Railways will ensure payment of at least 1.0% interest rate and of the state performance bond.

The European Bank for Reconstruction and Development also provided a loan in the amount of USD 40 million.



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