State-owned enterprise Ukrzaliznytsia, with funding from the European Bank for Reconstruction and Development (EBRD) and the World Bank's RELINC project, plans to acquire up to 80 modern powerful electric locomotives.

As the company's press service announced on Friday, the corresponding tender has been published on the EBRD portal. Applications are accepted until July 22, 2024.

"According to the tender terms, participants shall submit two tender proposals for the supply of 30 or 80 locomotives depending on the availability of funding," Ukrzaliznytsia said in a statement.

The expected total project cost is EUR 400 million. Part of this amount – EUR 300 million – will be allocated by the EBRD on the terms of a guaranteed sovereign loan. Concurrently, the project will be supported by an investment grant of $190 million from the U.S. government, managed by the World Bank through the Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund (URTF) as part of the Repairing Essential Logistics Infrastructure and Network Connectivity (RELINC) project managed by the World Bank.

"The tender requirements stipulate that the winner, in addition to supplying locomotives, shall create conditions in Ukraine for servicing and warranty repair of the new rolling stock," Ukrzaliznytsia reported.

The company referred to this step as evolutionary, indicating that it not only procures equipment but also changes its approach to maintenance.

"It will also allow for maximum localization of capacities in Ukraine for servicing and repairing locomotives," Ukrzaliznytsia said.

As reported, the Export-Import Bank of the United States approved a decision on credit financing to renew the rolling stock fleet with 40 locomotives produced by Wabtec. It is expected that the bank will provide financing of $156 million for a term of 15 years.