Purchase of passenger cars


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

Description of the project

The project envisages the renewal of passenger rolling stock by:

1) continuation of the implementation in 2026-2027 of the public investment project for the purchase of passenger cars (366 units) (DREAM-UA-140824-F5EC120C), the implementation of which started in 2025 within the framework of the budget program of the State Committee for the Development of the State Budget of Ukraine 3101820;

2) continuation of the purchase of passenger cars during 2028-2029 (240 units) with the finalization of delivery and final payment by 2031 inclusive.

The current technical condition of passenger rolling stock does not meet modern requirements for passenger comfort and the quality of transportation services provided to the population, therefore one of the urgent problems for JSC "Ukrzaliznytsia" The physical and moral aging of the rolling stock remains. Given the current situation, JSC "Ukrzaliznytsia" is forced to exclude about 100 passenger cars from the inventory fleet every year, since, according to the conclusion of the technical diagnostics conducted to determine the possibility of safe operation, they will exhaust their resource. Currently, only 11% of the fleet of passenger cars is younger than 5 years (or underwent modernization during this period), 8% is older than the maximum allowable 44 years, and the average age of passenger cars is 31 years. Due to such critical wear and tear, the fleet has decreased by a third for the period from 2020 to 2025   (-1109 cars), primarily due to retirement beyond the maximum service life (according to the results of traffic safety diagnostics: some unusable cars are over 28 years old and most cars are over the maximum term of 44 years), as well as due to losses of cars associated with military operations on the territory of Ukraine.

Overcoming such a significant shortage of cars is possible by financing the purchase of new passenger cars from the State Budget of Ukraine.

The purchase of railway rolling stock for passenger transportation on long-distance and local trains at the expense of the State Budget of Ukraine is provided for by Article 10 of the Law of Ukraine “On Railway Transport”.

The purpose of the project

Main Goal:

Meeting demand

Secondary Goal:

Increasing compliance with modern standards, Improving the equality of wealth distribution, Ensuring inclusiveness and equal opportunities, Introducing innovations and energy-efficient solutions, Improving the quality of services

Description of the purpose of the project and ways to achieve it

Updating rolling stock for passenger transportation will contribute to: - satisfaction of the existing demand for passenger transportation; - improving the quality and availability of passenger transportation services by rail (including the evacuation of the population from war zones to safe regions); - replacement of passenger cars lost during hostilities; - purchase of passenger cars adapted for the transportation of people in wheelchairs; - application of elements of inclusiveness in all carriages (letters in Braille); - implementation of barrier-free requirements in non-specialized carriages (for example, changing tables, etc.).

Problems and solutions resulting from project implementation

The current technical condition of passenger rolling stock does not meet modern requirements for passenger comfort and the quality of transportation services provided to the population, therefore, one of the urgent problems for JSC "Ukrzaliznytsia" remains the physical and moral aging of rolling stock. Given the current situation, JSC "Ukrzaliznytsia" is forced to annually exclude about 100 passenger cars from the inventory fleet, since according to the conclusion of the technical diagnostics conducted to determine the possibility of safe operation, they have exhausted their resource. Currently, only 11% of the fleet of passenger cars is younger than 5 years (or has undergone modernization during this period), 8% is older than the maximum allowable 44 years, and the average age of passenger cars is 31 years. Due to such critical wear and tear, the fleet decreased by a third (-1,109 wagons) between 2020 and 2025, primarily due to retirement beyond the maximum service life (according to the results of traffic safety diagnostics: some unusable wagons are over 28 years old and most wagons are over the maximum term of 44 years), as well as due to losses of wagons associated with military operations on the territory of Ukraine. Since the beginning of military aggression and large-scale evacuation of the population, the existing passenger rolling stock of JSC Ukrzaliznytsia has been operated in an extremely intensive mode. Passenger transportation has now increased by 23% simultaneously with the existing shortage of passenger wagons. At the same time, due to the irretrievable loss of part of the fleet of passenger wagons as a result of military operations and its aging, more than 100 wagons are forced to be written off annually, which are not subject to restoration or modernization for safety reasons. Production of passenger cars by a domestic manufacturer will provide support to such strategic sectors of the economy as railway transport and machine building. The utilization of the capacities of the domestic passenger car manufacturing industry will have a significant economic and social multiplier effect in related sectors of the economy, since a large number of Ukrainian related enterprises will participate in the manufacture of railway rolling stock for passenger transportation. The state will receive additional economic and social effects, because on average up to 40% of the funds spent will return to the budget and will provide more opportunities to support the economy and strengthen the defense capability of the state. Therefore, the annual purchase of passenger cars for budget funds is extremely important for meeting the existing demand for passenger transportation, improving the quality and accessibility of passenger transportation services by rail.

Socio-economic context

Indicator

Value

Number of jobs, including for IDPs

12 thous. people

Number of people who will use the service

27748 thous. people

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

Project objectives were not specified by the initiator

Project Sustainable Development Goals

Demand for the service and its dynamics

What methodology was used to estimate demand?

Внутрішня методика АТ "Укрзалізниця", яка передбачає аналіз попиту пасажирів на квитки у внутрішньому сполученні (спальні вагони).
[Response was provided in the Preliminary Investment Feasibility Study]

Has data from external sources been used in the demand assessment?

Yes
[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
26.9 mln people
Annual demand for services/infrastructure
2
27.7 mln people
Annual demand for services/infrastructure
3
28.2 mln people
Annual demand for services/infrastructure
4
29.2 mln people
Annual demand for services/infrastructure
5
30.2 mln people
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?

Pollution prevention and control
[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?

Sustainable use and protection of water and marine resources
[Response was provided in the Investment Feasibility Study]
Pollution prevention and control
[Response was provided in the Investment Feasibility Study]
Climate change adaptation
[Response was provided in the Investment Feasibility Study]
Protecting and restoring biodiversity and ecosystems
[Response was provided in the Investment Feasibility Study]
Climate change mitigation
[Response was provided in the 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

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"?

Conducting an EIA is not required.
[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:

None of the options are applicable

Does the project provide for improving women's access to services?

Other benefits from project implementation
[Response was provided in the Preliminary Investment Feasibility Study]
The project will improve women's access to education (primary, secondary, vocational)
[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?

No consultations were held with target groups.
[Response was provided in the Investment Feasibility Study]
Women's participation is ensured at various stages of planning (including public hearings)
[Response was provided in the Investment Feasibility Study]

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]

Documents

Name
Date
Economic analysis_wagons.pdf
11.08.2025
11:11:41 UTC

Alternative technical solutions

Technical Solution 1

Purchase of passenger cars

Technical Solution 2

Capital and restoration repairs of wagons

Cost breakdownCost justificationCost justification
Project cost (preparation and implementation)42'779'670'001 UAH7'800'000'001 UAH
For preparation1 UAH1 UAH
For implementation42'779'670'000 UAH7'800'000'000 UAH
Project operation and closure cost36'578'142'001 UAH36'578'142'001 UAH
For operation36'578'142'000 UAH36'578'142'000 UAH
For closing1 UAH1 UAH
Average annual costs2'439'142'000 UAH0 UAH
Project duration, incl.73 months13 months
Deadline for developing a FFS1 month1 month
Implementation period72 months12 months
Service life360 months192 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
To components
0
To components
0

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?
No

[Response was provided in the Preliminary Investment Feasibility Study]

Will the project involve national or international suppliers and contractors?
Yes, only national

[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?
Обрана стратегія закупівель базується на таких ключових принципах: конкурентність, прозорість, економічна ефективність, розвиток національного виробника та відповідність технічним і екологічним стандартам ЄС. Проведений аналіз ринку показав, що в Україні функціонує обмежена кількість виробників пасажирських вагонів, здатних забезпечити постачання сучасного рухомого складу у необхідних обсягах та у встановлені строки. Водночас, наявний український виробник має виробничий потенціал, технічні можливості та досвід виробництва вагонів в рамках бюджетних програм, який у співпраці із малими, середніми вітчизняними підприємствами, а також із залученням міжнародних підприємств може забезпечити виконання проєкту. У сфері міжнародних постачальників на ринку представлені кілька великих європейських та азійських компаній, проте закупівля у них потребує суттєво довшого терміну реалізації, адаптації технічних характеристик до українських стандартів, а також супровідного обслуговування на території України. З огляду на зазначене, обрана стратегія закупівель - відкриті торги.

[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?
Усі закупівлі будуть здійснюватися через електронну систему публічних закупівель ProZorro, що гарантує відкритість усіх етапів процедури та надає рівний доступ до участі для всіх зацікавлених учасників. Іться з урахуванням принципу технформація про тендер, документацію, рішення та укладені договори буде доступна публічно. Технічні вимоги до предмета закупівлі формуюнологічної нейтральності, що унеможливлює дискримінацію учасників. Крім того передбачено застосування антикорупційних застережень у договорах та регулярна звітність про використання бюджетних коштів.

[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.)?
Open competitive bidding

[Response was provided in the Investment Feasibility Study]

Pre-market engagement
На етапі підготовки проєкту здійснено комплекс заходів із попереднього залучення ринку з метою визначення потенційних постачальників, підрядників та доступних технічних рішень. Прямі запити до компаній-потенційних постачальників для уточнення технічних характеристик і строків постачання. Крім того АТ "Укрзалізниця має успішний досвід реалізації подібних проектів з 2021 року."

[Response was provided in the Investment Feasibility Study]

Potential market participants
У межах попереднього аналізу ринку і з урахуванням наявної інформації було ідентифіковано низку потенційних постачальників пасажирських вагонів, які можуть взяти участь у закупівлі. До них входять як вітчизняні, так і міжнародні виробники з відповідним досвідом, технічними можливостями та виробничими потужностями.

[Response was provided in the Investment Feasibility Study]

Market readiness assessment
На основ проведеного аналізу ринку, консультацій з галузевими експертами, а також досвіду АТ "Укрзалізниця" реалізації проектів із закупівлі пасажирських вагонів з 2021 року вствновлено, що ринок має достатню виробничу, технічну та організаційну спроможність для забезпечення реалізації проекту в заявлених обсягах і строках.

[Response was provided in the Investment Feasibility Study]

Financial justification

Total project budget

Total preliminary budget79'357'812'002 UAH44'378'142'002 UAH
Project cost (preparation and implementation)42'779'670'001 UAH7'800'000'001 UAH
For preparation1 UAH1 UAH
For implementation42'779'670'000 UAH7'800'000'000 UAH
Project operation and closure cost36'578'142'001 UAH36'578'142'001 UAH
For operation36'578'142'000 UAH36'578'142'000 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 UnitСередня вартість проекту на одиницю продукції
Service Unit Cost70'593'845 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?
Yes – the analysis was conducted, it was found that the tariffs correspond to the financial capabilities of consumers

[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 Funds0 UAH0 UAH

Public-private partnership

Has a qualitative and quantitative assessment of the project's suitability for implementation through a PPP mechanism been conducted?
The project does not fall under the PPP format by its nature/character

[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?
Yes, successfully implemented 1 or more similar projects

[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
None of the options are applicable
Is there an understanding of where to find relevant experts and consultants?
Yes, negotiations are already underway.

[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?
Specialists in interaction with international financial organizations (IFOs)

[Response was provided in the Investment Feasibility Study]

Environmental experts

[Response was provided in the Investment Feasibility Study]

Financial consultants/modelers

[Response was provided in the Investment Feasibility Study]

Legal consultants

[Response was provided in the Investment Feasibility Study]

Commercial experts

[Response was provided in the Investment Feasibility Study]

Economic analysts

[Response was provided in the Investment Feasibility Study]

Strategic consultants

[Response was provided in the Investment Feasibility Study]

Technical experts

[Response was provided in the Investment Feasibility Study]

Social/gender consultants

[Response was provided in the Investment Feasibility Study]

Management experts / project managers

[Response was provided in the Investment Feasibility Study]

Are there plans to involve experts and consultants for further implementation of the project?
No

[Response was provided in the Investment Feasibility Study]

Risk assessment

Financial riskDefinedUndefined
Operational riskDefinedUndefined
Other 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-140825-23C2359AState SPInvestment Feasibility StudyInclude--
01/10/2025SPP-N-011025-54F7299CState SPPInvestment Feasibility StudyInclude-0