Home / Business Intelligence / EUR 60 million KWf loan for modernising Ukraine’s locomotive fleet

EUR 60 million KWf loan for modernising Ukraine’s locomotive fleet

KfW Development Bank plans to approve next week the second individual loan agreement of EUR 300 million, as part of the  framework agreement for loans worth up to EUR 500 million signed by the German Federal Government and the Ukrainian state in 2015. 

“The funding could be allocated by the end of this year”,  said Gennady Zubko, Vice Prime Minister – Minister of Regional Development, Construction, Housing and Utilities.  “These funds could be used to restore the infrastructure in Donbas (eastern Ukraine). EUR 150 million will be allocated for energy projects, EUR 80.67 million for infrastructure projects and EUR 60 million for purchase of equipment for modernizing the locomotive fleet. The total amount of funding for the approved projects is EUR 290.67 million“, he added.

According to the Ministry of Infrastructure, Ukrainian Railways (Ukrzaliznytsia) operates a rail network of 21,600 km (47 % electrified) and a fleet of 4,000 locomotives and 123,000 railcars. It accounts for approximately 63 % of total freight transportation and 34 % of passenger transportation in Ukraine.

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