Ukraine’s rail infrastructure restauration will benefit a UAH 912.2 million (EUR 23 million) budget from the government and UAH 916 million (more than EUR 23 million) will be used for road transport, part of government’s plan to restore critical logistics transport infrastructure.
On October 9, 2023, the Government of Ukraine will use a UAH 1.8 billion (EUR 45.5 million) of the grant under the Repairing Essential Logistics Infrastructure and Network Connectivity (RELINC) project to restore critical logistics infrastructure.
“The restoration of critical infrastructure is a priority area of our work, along with the reconstruction of housing, social infrastructure and job creation. The ability to quickly restore rail and road infrastructure in the face of closed skies and blocked sea lanes is extremely important. Currently, rail and road transport play a key role in ensuring the functioning of our economy, military logistics and passenger traffic. The funds will also be used to produce suitable platforms to increase container traffic and to purchase materials and equipment to repair key railway bridges,” said Oleksandr Kubrakov, Deputy Prime Minister for Restoration of Ukraine and Minister for Communities, Territories and Infrastructure Development said.
The grant agreement between Ukraine and the International Bank for Reconstruction and Development (IBRD) for the Repairing Essential Logistics Infrastructure and Network Connectivity (RELINC) project was signed on 10 February 2023. The total cost of the project is close to USD 600 million (EUR 565 million).
In addition, RELINC will support the implementation of key reforms needed to improve Ukraine’s readiness to undertake large and complex recovery programmes. These include the introduction of anti-corruption tools, the digitalisation of the reconstruction process, and more effective interaction with donors.
The Cabinet of Ministers, on the initiative of the Ministry for Communities, Territories and Infrastructure Development, has decided to allocate EUR 100 million to Ukrzaliznytsia as part of a new budget programme.
Ukraine’s rail infrastructure restauration programme will be implemented by the Ministry for Communities, Territories and Infrastructure Development, while the State Agency for Restoration and Infrastructure Development will be responsible for road projects.
Over the course of the war, Ukraine has started to develop logistics across its western border with the European Union to ensure its exports (more than 60% of country’s exports go to the EU).
New checkpoints have been opened at the border with Romania and Poland, two countries that were actively involved to support Ukraine. The Government of Ukraine is expanding and upgrading its roads and railway networks to restore and better connect its links with its neighboring EU countries. Other important logistics area is Danube cluster, where the ports of Izmail, Ust-Dunaisk and Reni tripled their cargo traffic and their upgrade and development is key to boost transit potential.
Currently, in Ukraine, the rail transport is the main mode of transport of passengers and cargo and is also playing a key role in defense and economic support. In June, the European Investment Bank and Ukrzaliznytsia signed a EUR 6.7 million EU grant agreement for the urgent needs of rail transport in Ukraine.
In February, the World Bank announced it will provide Ukraine a USD 50 million grant to support humanitarian relief and recovery, and increase capacity of import and export corridors while in May, the bank signed an agreement for a USD 25 million grant for the reconstruction of railway infrastructure.
Also relating to projects’ funding, one of the most relevant actions for Ukraine is the Connecting Europe Facility (CEF) thanks to an agreement signed with the European Commission in June.
Now Ukraine is free to submit its projects until 30 January 2024, under the largest CEF call for proposals for 2021 – 2027 released on September 26, 2023 by the EC.
Ukraine can apply its proposals along the Solidarity Lanes initiative and based on the revised maps of the TEN-T which was extended by four European Transport Corridors which includes Mariupol and Odesa ports as well as the infrastructure of the Republic of Moldova.
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