Paths of Ukraine-EU solidarity – Integration of the railway system of Ukraine into the EU transport system (Connecting Europe Facility 2023)


The purpose of the project:

Infrastructure improvement

Key spending unit
Ministry of Development of Communities, Territories and Infrastructure of Ukraine
Functional classification of expenditures and budget crediting
0453 - Залізничний транспорт
Target priority of the government
010901 - Забезепчення захисту інфраструктури в підсекторі "Залізничний транспорт",
Score
5.985

Basic data

Detailed description of the project

The Connecting Europe Facility (CEF) 2023 project covers European Union (EU) support for the Ukrainian railway system. 

The main focus is on:

  • improvement of important checkpoints and related transshipment capacities;
  • development of a strategy for the development of a modern track system with a width of 1435 mm in Ukraine;
  • development of related projects in the area between the EU/Ukraine border and Lviv.

The main strategic goals of the project, provided by the EU strategy, are:

  • further development of the Trans-European Transport Network (TEN-T) and related corridors;
  • providing the necessary capacities for the export of Ukrainian agricultural products to markets (Paths of solidarity);
  • improvement of interoperability between the railway systems of the EU and Ukraine;
  • providing the necessary capacities for the supply of strategic goods from Europe to Ukraine (dual-purpose military mobility);
  • increasing the sustainability of logistics between Ukraine and the EU;
  • increasing the reliability of freight transportation between the EU and Ukraine;
  • reducing the negative impact of transport on the environment and climate;
  • facilitation of intermodal logistics.

Investment project components:

  • project management;
  • development of the project from the level of technical and economic feasibility studies to the working documentation for the reconstruction of the track on the Uzhgorod - Lviv section (275 km) with the replacement of a track with a width of 1520 mm for a track of 1435 mm with the corresponding reconstruction of facilities and engineering structures.
  • development of the project from the level of technical and economic feasibility study to working documentation for the construction and electrification of a track with a width of 1435 mm on the section Lviv - Chernivtsi - Vadul-Siret - State border;
  • development of a strategy for the development of the Lviv railway hub, taking into account the prospects of expanding the TEN-T railway network of 1435 mm gauge on the territory of Ukraine;
  • restoration and electrification of the closed 12-kilometer track 1435 mm checkpoint Matyovtse/Pavlovo 2 (Slovakia/Ukraine) - Uzhhorod. Electrification of the 22 km long 1435 mm Chop-Uzhhorod railway track;
  • restoration and electrification of the closed track with a length of 12 km 1435 mm PP Matyovtse/Pavlovo 2 (Slovakia/Ukraine) - Uzhhorod;
  • development of NoBo verification at various stages of project preparation.

The implementation of the project takes place on the terms of co-financing, where 50% of the cost of the works is a grant from CINEA, and the remaining 50% - own funds or other sources of funding. The total cost (100%) of the project is 4,181,180,517.00 (85,908,784.00 euros), of which:

  • the amount of grant funds (50%) from CINEA is UAH 2,090,590,259.00 (EUR 42,954,392.00);
  • the need for allocated budget funds (46%) for project implementation is UAH 1,931,183,841.14 (EUR 39,649,142.00);
  • the amount of own funds (4%) is UAH 159,406,417.50 (EUR 3,275,250.00).
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Problems

Current status, description of problems and needs for their solution
Different track standards in Ukraine and the EU are the reason for the low carrying capacity of passengers and cargo in international traffic. At the moment, a partial transition to the track width of the European standard, where in some areas combined tracks of two standards 1520 mm (Ukrainian) and 1435 mm (European) will be built, and in some single-track sections of the track - European, will allow to increase the throughput and profitability of freight transportation by rail.
A detailed description of the project goal and the way to achieve it
1. To improve cooperation and logistics between the economies of the EU and Ukraine. 2. Determine directions of economic development for the recovery of Ukraine's economy after the war. 3. To ensure a modern and competitive Ukrainian railway system. 4. Preserve the historically stable Ukrainian modal split in favor of environmentally friendly modes of transport. 5. To develop a financially stable railway sector of Ukraine. 6. To improve the level of service (LOS) of passenger transportation by rail transport.

Coordination of the project with strategic documents

Priority action plan of the government
The special tasks of the "Connecting Europe Mechanism" program in the transport sector are to promote the development of projects of common interest and related to efficient, interconnected and multimodal networks and infrastructure with the aim of smart, compatible, sustainable, inclusive, accessible, reliable and safe mobility in accordance with the objectives of Regulation (EU) No. 1315/2013-4;

Involved organizations

Organization
JOINT STOCK COMPANY "UKRAINIAN RAILWAY"
Roles
  • Project author
  • A balance holder
  • An executor
  • An initiator
  • Beneficiary
EDRPOU code
40075815
Organization
Ministry of Development of Communities, Territories and Infrastructure of Ukraine
Roles
  • Key Spending Unit
EDRPOU code
310

Demand for the service and its dynamics

Category
Year
Rating
Measure
Annual demand for services/infrastructure
2023
2023
млн. люд.

Project indicators

Indicator
Base value
Target value
Bandwidth
44
57

Risk assessment

Risk
Category
Degree
Probability
Strategy
Martial law
Other risk
Considerable
High
Acceptance
Violation of passenger and freight traffic
Technical risk
Considerable
Medium
Reduction
Delays in public procurement procedures
Market risk
Considerable
Medium
Reduction
Lack of budgetary allocations for financing the project
Financial risk
Critical
High
Avoidance

Project plan

Assessment
Implementation
1277 days
1216 days

Documents

Name
Date
101175791_23-UA-TG-EUUA IUARS1_ESR.PDF
Common document
14.08.2024
14:13:11 UTC

Gallery

DREAM Code

DREAM-UA-140824-EBDAE57A

Status

Active

Create date

14.08.2024

Estimated budget

4'181'180'517,00

Project creator

JOINT STOCK COMPANY "UKRAINIAN RAILWAY"

Initiator

JOINT STOCK COMPANY "UKRAINIAN RAILWAY"

Implementer

JOINT STOCK COMPANY "UKRAINIAN RAILWAY"

Project implementation period

11.24 - 05.28

Geography

The territory of Ukraine

Classification of sectors of economic activity according to the taxonomy of the World Bank

TW - Railways