Ukrainian Railways will receive $25 million from the World Bank to rebuild critical infrastructure

Ukrainian Railways (UZ) will receive $25 million in financing from the World Bank to repair critical infrastructure and increase freight transportation. This is stated in the message of the national railway operator.

In order to implement the grant, the UZ begins cooperation with the UN Office for Project Services – UNOPS, the corresponding agreement was signed in Kyiv.

According to a member of the UZ’s board Anton Mishin, the company is expanding its portfolio of cooperation with international institutes.

«For the first time, we have financial support from the World Bank, and with this grant funding we expect the supply of equipment and rolling stock already this year. I am confident that the implementation of this project will allow us to expand our partnership to further strategically important projects for the railway infrastructure of Ukraine,» he noted.

Cooperation provides for the purchase of equipment for the restoration of critically important objects of railway infrastructure that have suffered damage. UNOPS will contribute to the organization of procurement according to the best global standards. UZ also expects to increase the fleet of fitting platforms.

As the director of UNOPS in Ukraine Tim Lardner noted, the railway connection is of exceptional importance for the economy of Ukraine both now and in the context of post-war reconstruction. UNOPS considers providing assistance to the national railway carrier a priority, because, in particular, it will facilitate the population’s access to necessary goods and create new opportunities for enterprises.

As GMk Center reported earlier, in April 2023, Ukrainian Railways transported for export 4.903 million tons of cargo, which is 7.5% less compared to the previous month, and 25.6% more compared to the same period of 2022. In January-April 2023, the railway operator transported up to 20.44 million tons of cargo for export.

Also, in 2022, in comparison with 2021, transportation of UZ in domestic communication decreased by 49.2%. According to the results of the year, the share of export transportation was 39.5% (-47.1% y/y), import – 8.2% (-69.5% y/y).