Ukrzaliznytsia and Alstom sign the locomotive contract

Prima T8 locomotives The Board Chairman of Ukrzaliznytsia Oleksandr Kamyshin and CEO of Alstom Henri Poupart-Lafarge signed a Memorandum of Understanding for the supply of 130 Prima T8 locomotives electric locomotives. EUR 900 million is the value of the contract of which EUR 750 million is the French financing. Under the protocol, France will cover 85% of the contract value with a EUR 350 million 14-year loan provided by the French Treasury while EUR 400 million will be covered by a syndicate of banks through the French Export Credit Agency. Ukraine will cover the 15% of the contract value representing EUR 150 million.

The agreement was signed in the presence of the President of Ukraine Volodymyr Zelenskyy and its French counterpart Emmanuel Macron, as well as the Minister of Infrastructure of Ukraine Kubrakov Oleksandr.

Under the agreement, Alstom will deliver 50 electric locomotives running on alternating current and 80 dual-voltage locomotives which can run on both alternating current and direct current. The new vehicles are expected to be delivered in six years.

The negotiations between the two sides began in 2018 and in 2021 an intergovernmental agreement was signed under which Alstom will deliver Prima T8 locomotives. The agreement also includes a share of localisation of 35 per cent.

“The signed agreement will allow us to get much-needed electric locomotives under the best possible conditions in today’s turbulent times. The use of Ukrainian companies and specialists in the construction and maintenance of the vehicles will also bring a unique expertise to Ukraine. There is still a lot of work to be done to discuss technical details, but most of the negotiations are done” the Chairman of Ukrzaliznytsia said.

“This is not just an agreement on the supply of locomotives. This is Ukraine’s integration into the economic system and transport network of the European Union,” the Infrastructure Minister said.

In 2020 Ukrzaliznytsia announced the procedure to acquire 205 locomotives, of which 135 AC locomotives, 50 DC locomotives and 20 dual system locomotives.

Ukrzaliznytsia’s rolling stock modernisation programme is one of the priorities of the “Large Construction national plan” unveiled by country’s president. The locomotive fleet renewal is the main projects to be implemented by Ukraine Railways as its electric and diesel units are 40-year-old.

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