Sector
Transport Sector
Stream
Ensuring the efficiency and continuity of passenger and freight transportation through the purchase and modernization of rolling stock, the development of its maintenance facilities, and the restoration of transport mobility
Maturity level
0
Preliminary Investment Feasibility Study
Project Status
Investment Feasibility Study
Entry into Portfolio
State level of SPP
Implementation
Completion
- General information
- Strategic Case
- Economic Case
- Commercial Case
- Financial Case
- Management Case
- Summary
General information
Description of the project
Updating the fleet of dual-power and alternating current freight electric locomotives to replace obsolete rolling stock. (150824-B4A99010 preliminary project initiated in 2024)
The purpose of the project
Main Goal:
Capacity building
Secondary Goal:
Increasing compliance with modern standards, Introducing innovations and energy-efficient solutions
Description of the purpose of the project and ways to achieve it
Updating the fleet of electric locomotives to meet the demand for freight transportation by rail and increasing the economic efficiency of freight transportation by electric traction. Increasing the competitiveness of rail transport services.
Problems and solutions resulting from project implementation
The main part of the electric locomotive fleet was designed and manufactured in the 60-80s of the last century, which require increased costs for repairs and current maintenance by 40-60% in operation, have low efficiency compared to modern locomotives, and cannot provide an adequate increase in the speed of freight trains.
Due to the high level of wear and tear and the inability to further extend the service life of electric locomotives due to the degradation and fatigue of the metal of their supporting structures, which have reached their extended service life, as well as taking into account the aging of the electric locomotive fleet, it is planned to withdraw from the inventory fleet in the coming years electric locomotives of the following series: VL8, VL10, VL80k and partially electric locomotives of the following series: VL80t, VL80s, VL82m.
Socio-economic context
Indicator
Value
Other economic
123 units
Other functional
123 units
Other functional
123 units
Other social
123 units
Strategic Case
Strategic feasibility of the project
Sector
Transport Sector
Subsector
Railway transport
Stream
Ensuring the efficiency and continuity of passenger and freight transportation through the purchase and modernization of rolling stock, the development of its maintenance facilities, and the restoration of transport mobility
Strategic document
National Transport Strategy of Ukraine until 2030
Task
3 Updating the rolling stock and fleet of Ukrainian carriers, introducing new approaches to their technical operation, introducing modern digital services for optimal calculation of fuel consumption, as well as training standards for management and crew members
Project objectives
Indicator
Base value
Target value
increase in annual productivity of the entire locomotive fleet by 2034 from 439 to 586 million gross tkm/year, which is 27.1%
439 t
586 t
-increase in the average daily productivity of the new locomotive from 1.203 to 1.931 million gross tkm, which is 60%;
1203000 t
1931000 t
increase in the technical readiness coefficient of new locomotives compared to existing types of locomotives from 0.71 to 0.95, which is 33.8%
0.71 units
0.95 units
reduction in specific energy consumption on average compared to existing types of locomotives – up to 7%
750 kWh
700 kWh
Project Sustainable Development Goals
Demand for the service and its dynamics
What methodology was used to estimate demand?
Показники попиту вантажообігу по роках (вимірюються в млрд т км брутто/рік )
[Response was provided in the Preliminary Investment Feasibility Study]
Has data from external sources been used in the demand assessment?
No
[Response was provided in the Preliminary Investment Feasibility Study]
Does the demand forecast take into account the latest demographic and economic forecasts?
Yes
[Response was provided in the Preliminary Investment Feasibility Study]
Indicator
Year
Demand
Annual demand for services/infrastructure
1
140813 t
Annual demand for services/infrastructure
2
132326 t
Annual demand for services/infrastructure
4
159884 t
Annual demand for services/infrastructure
5
168252 t
Economic justification
Analysis of the project's impact on ecology and climate change
Does the planned activity have a potential positive contribution to achieving climate or environmental objectives?
Transition to a circular economy
[Response was provided in the Preliminary Investment Feasibility Study]
Pollution prevention and control
[Response was provided in the Preliminary Investment Feasibility Study]
Climate change mitigation
[Response was provided in the Preliminary Investment Feasibility Study]
Is the proposed project expected to significantly harm any of the following climate or environmental objectives?
None of the options are applicable
Does the planned activity have a potential positive contribution to achieving climate or environmental objectives?
None of the options are applicable
Is the proposed project expected to significantly harm any of the following climate or environmental objectives?
None of the options are applicable
Have the greenhouse gas emissions or emission reductions (Scope 1-2) associated with the project been calculated for a typical year and the entire project period?
No
[Response was provided in the Investment Feasibility Study]
Does the project require an environmental impact assessment (EIA) in accordance with the Law of Ukraine "On Environmental Impact Assessment"?
Yes, not yet conducted
[Response was provided in the Investment Feasibility Study]
Project sustainability and inclusivity
Identify potential gender risks of the project and indicate possible ways to overcome them:
Not applicable to my project
[Response was provided in the Preliminary Investment Feasibility Study]
Does the project provide for improving women's access to services?
Not applicable to my project
[Response was provided in the Preliminary Investment Feasibility Study]
Envisaged training or advanced training for women in the private sector
[Response was provided in the Preliminary Investment Feasibility Study]
The project will create jobs available to women (temporarily or permanently)
[Response was provided in the Preliminary Investment Feasibility Study]
Are civil society organizations representing women and vulnerable groups included in the consultation process?
No
[Response was provided in the Preliminary Investment Feasibility Study]
Were consultations held with representatives of target groups to take into account gender equality issues in the project?
None of the options are applicable
Have the gender risks and social impacts of the project been assessed?
All possible positive impacts of the project on women, men or other gender groups have been identified
[Response was provided in the Investment Feasibility Study]
All possible negative impacts of the project on women, men or other gender groups have been identified
[Response was provided in the Investment Feasibility Study]
Are there management and institutional mechanisms in place to ensure gender equality?
Not provided for by the project
[Response was provided in the Investment Feasibility Study]
Alternative technical solutions
Technical Solution 1
renewal of the electric locomotive fleet
Technical Solution 2
overhaul with extended service life
Cost breakdownCost justificationCost justification
Project cost (preparation and implementation)41'476'070'000 UAH6'200'000'000'001 UAH
For preparation70'000 UAH1 UAH
For implementation41'476'000'000 UAH6'200'000'000'000 UAH
Project operation and closure cost2 UAH1'623'000'000'001 UAH
For operation1 UAH1'623'000'000'000 UAH
For closing1 UAH1 UAH
Average annual costs1'821'000'000 UAH0 UAH
Project duration, incl.60 months39 months
Deadline for developing a FFS12 months3 months
Implementation period48 months36 months
Service life480 months120 months
Target indicatorsDefined Defined
Technical Solution Status
Active
[The technical approach was selected for further detailed analysis or implementation.]
Rejected
[The technical approach was not selected for further detailed analysis or implementation.]
Components of a technical solution
Commercial Justification
Supplier and contractor market assessment
Is the project likely to attract a sufficient number of bidders to ensure real competition that will encourage bidders to think innovatively and maximize the quality of their proposals?
No
[Response was provided in the Preliminary Investment Feasibility Study]
Is the project of interest to small and medium-sized enterprises?
Yes
[Response was provided in the Preliminary Investment Feasibility Study]
Will the project involve national or international suppliers and contractors?
Yes, both national and international
[Response was provided in the Preliminary Investment Feasibility Study]
Has an analysis of available procurement options been conducted for the technical solution?
Yes
[Response was provided in the Preliminary Investment Feasibility Study]
What procurement strategy was chosen for the project implementation, and what justifies its feasibility in the context of the market and project objectives?
1. У рамках реалізації спільного зі Світовим банком проєкту «Відновлення критично важливої логістичної інфраструктури та мережевого сполучення («RELINC»)» та спільного з Європейським банком реконструкції і розвитку (далі – ЄБРР) проєкту «Електровози для АТ «Укрзалізниця» на порталі електронних закупівель «ЕСЕРР» оголошено закупівлі: - до 30 електровозів за грантові кошти Світового банку RELINC; - до 50 електровозів за кредитні кошти ЄБРР. У рамках співпраці Уряду України з Урядом Французької Республіки передбачає постачання до 43 од. вантажних електровозів змінного струму (ALSTOM) на умовах кредитного фінансування.
[Response was provided in the Investment Feasibility Study]
What approaches are planned to be used to ensure transparency, competition, and efficiency in the procurement process?
1. У рамках реалізації спільного зі Світовим банком проєкту «Відновлення критично важливої логістичної інфраструктури та мережевого сполучення («RELINC»)» та спільного з Європейським банком реконструкції і розвитку (далі – ЄБРР) проєкту «Електровози для АТ «Укрзалізниця» на порталі електронних закупівель «ЕСЕРР» оголошено закупівлі: - до 30 електровозів за грантові кошти Світового банку RELINC; - до 50 електровозів за кредитні кошти ЄБРР. У рамках співпраці Уряду України з Урядом Французької Республіки передбачає постачання до 43 од. вантажних електровозів змінного струму (ALSTOM) на умовах кредитного фінансування.
[Response was provided in the Investment Feasibility Study]
What types of procurement procedures are envisaged by the project (open tender, negotiated procedure, competitive dialogue, etc.)?
Other
[Response was provided in the Investment Feasibility Study]
Pre-market engagement
1. У рамках реалізації спільного зі Світовим банком проєкту «Відновлення критично важливої логістичної інфраструктури та мережевого сполучення («RELINC»)» та спільного з Європейським банком реконструкції і розвитку (далі – ЄБРР) проєкту «Електровози для АТ «Укрзалізниця» на порталі електронних закупівель «ЕСЕРР» оголошено закупівлі: - до 30 електровозів за грантові кошти Світового банку RELINC; - до 50 електровозів за кредитні кошти ЄБРР. У рамках співпраці Уряду України з Урядом Французької Республіки передбачає постачання до 43 од. вантажних електровозів змінного струму (ALSTOM) на умовах кредитного фінансування.
[Response was provided in the Investment Feasibility Study]
Potential market participants
1. У рамках реалізації спільного зі Світовим банком проєкту «Відновлення критично важливої логістичної інфраструктури та мережевого сполучення («RELINC»)» та спільного з Європейським банком реконструкції і розвитку (далі – ЄБРР) проєкту «Електровози для АТ «Укрзалізниця» на порталі електронних закупівель «ЕСЕРР» оголошено закупівлі: - до 30 електровозів за грантові кошти Світового банку RELINC; - до 50 електровозів за кредитні кошти ЄБРР. У рамках співпраці Уряду України з Урядом Французької Республіки передбачає постачання до 43 од. вантажних електровозів змінного струму (ALSTOM) на умовах кредитного фінансування.
[Response was provided in the Investment Feasibility Study]
Market readiness assessment
1. У рамках реалізації спільного зі Світовим банком проєкту «Відновлення критично важливої логістичної інфраструктури та мережевого сполучення («RELINC»)» та спільного з Європейським банком реконструкції і розвитку (далі – ЄБРР) проєкту «Електровози для АТ «Укрзалізниця» на порталі електронних закупівель «ЕСЕРР» оголошено закупівлі: - до 30 електровозів за грантові кошти Світового банку RELINC; - до 50 електровозів за кредитні кошти ЄБРР. У рамках співпраці Уряду України з Урядом Французької Республіки передбачає постачання до 43 од. вантажних електровозів змінного струму (ALSTOM) на умовах кредитного фінансування.
[Response was provided in the Investment Feasibility Study]
Financial justification
Total project budget
Total preliminary budget41'476'070'002 UAH7'823'000'000'002 UAH
Project cost (preparation and implementation)41'476'070'000 UAH6'200'000'000'001 UAH
For preparation70'000 UAH1 UAH
For implementation41'476'000'000 UAH6'200'000'000'000 UAH
Project operation and closure cost2 UAH1'623'000'000'001 UAH
For operation1 UAH1'623'000'000'000 UAH
For closing1 UAH1 UAH
Were the methodological recommendations approved by the Ministry of Finance of Ukraine applied when calculating the indicative budget?
Yes
[Response was provided in the Preliminary Investment Feasibility Study]
Were the methodological recommendations approved by the Ministry of Finance of Ukraine applied when calculating the indicative budget?
Yes
[Response was provided in the Investment Feasibility Study]
Average project cost per service recipient
Service UnitВантажний електровоз подвійного живлення
Service Unit Cost33'721'200'000'000 UAH
Profitability of the project
Is the project expected to generate income?YesNo
Is the project self-sustaining?No
Availability of services
Has an analysis been conducted of the accessibility of services for consumers and their financial ability to pay the established tariffs?
No – analysis not performed
[Response was provided in the Preliminary Investment Feasibility Study]
Project Financing Mechanisms
Are funding sources and mechanisms identified?
Source and MechanismYesNo
Funding Sources
Approved Funds0 UAH0 UAH
Expected Funds41'477'100'000 UAH0 UAH
Public-private partnership
Has a qualitative and quantitative assessment of the project's suitability for implementation through a PPP mechanism been conducted?
No, no assessment was conducted.
[Response was provided in the Preliminary Investment Feasibility Study]
Are there, after conducting an appropriate study, private investors interested in the possibility of implementing the project in the PPP format?
No
[Response was provided in the Preliminary Investment Feasibility Study]
Management Rationale
Team competencies
Determine which competencies/expertise required for successful project preparation and implementation can be provided by the project initiator's own project team (without involving external advisors)
Strategic justification - analysis of the strategic feasibility of the project
[Response was provided in the Preliminary Investment Feasibility Study]
Economic justification - economic analysis
[Response was provided in the Preliminary Investment Feasibility Study]
Project management - communication with stakeholders
[Response was provided in the Preliminary Investment Feasibility Study]
Project management - risk management
[Response was provided in the Preliminary Investment Feasibility Study]
Economic justification - social and gender analysis
[Response was provided in the Preliminary Investment Feasibility Study]
Project management - public consultations
[Response was provided in the Preliminary Investment Feasibility Study]
Economic feasibility study - technical expertise
[Response was provided in the Preliminary Investment Feasibility Study]
Business case - analysis of available procurement options
[Response was provided in the Preliminary Investment Feasibility Study]
Project management - legal support
[Response was provided in the Preliminary Investment Feasibility Study]
Strategic rationale - SDG compliance analysis
[Response was provided in the Preliminary Investment Feasibility Study]
Project management - working with international financial organizations (IFOs)
[Response was provided in the Preliminary Investment Feasibility Study]
Financial analysis - financial analysis
[Response was provided in the Preliminary Investment Feasibility Study]
Strategic rationale - demand analysis
[Response was provided in the Preliminary Investment Feasibility Study]
Economic justification - environmental expertise
[Response was provided in the Preliminary Investment Feasibility Study]
Business case - analysis of the market environment
[Response was provided in the Preliminary Investment Feasibility Study]
Does the team have experience implementing similar projects?
Partially, we have limited experience
[Response was provided in the Preliminary Investment Feasibility Study]
Identify which competencies/expertise required for successful project preparation and implementation need to be strengthened by engaging independent experts or consultants
Management justification - legal support
[Response was provided in the Preliminary Investment Feasibility Study]
Is there an understanding of where to find relevant experts and consultants?
No, I need help.
[Response was provided in the Preliminary Investment Feasibility Study]
Is the project management structure defined: working group, chair, project team?
Yes
[Response was provided in the Investment Feasibility Study]
What categories of experts and consultants have already been involved at the project preparation stage?
None of the options are applicable
Are there plans to involve experts and consultants for further implementation of the project?
Yes
[Response was provided in the Investment Feasibility Study]
Risk assessment
Financial riskDefinedUndefined
Operational riskDefinedUndefined
Organizational events
ResponseDefinedUndefined
Results of the feasibility analysis
Project Preparation Program Engagement and Funding Needs
Is there ongoing cooperation or support within the framework of international technical assistance (ITA) or from other donor or government agencies?
No
[Response was provided in the Preliminary Investment Feasibility Study]
Does the project require preparation assistance from Project Preparation Programs (PPF)?
None of the options are applicable
Does the project require additional preparation assistance from Project Preparation Facilities (PPF)?
None of the options are applicable
Need for financing
Does the project require additional funding for preparation?
No
[Response was provided in the Preliminary Investment Feasibility Study]
Project Approval History
DateDecision NumberPortfolioProject StatusDecisionReasonsMaturity level
14/08/2025SP-N-140825-C59974C4State SPInvestment Feasibility StudyInclude--
01/10/2025SPP-N-011025-0CB9DF42State SPPInvestment Feasibility StudyInclude-0