Ensuring the sustainable functioning of railway transport by modernizing and developing the infrastructure of 1435 mm and 1520 mm standards, restoring damaged facilities and implementing technological solutions for the safety and continuity of transportation, as well as reconstructing stations to create a barrier-free environment


Sector

Transport Sector

Stream

Ensuring the sustainable functioning of railway transport by modernizing and developing the infrastructure of 1435 mm and 1520 mm standards, restoring damaged facilities and implementing technological solutions for the safety and continuity of transportation, as well as reconstructing stations to create a barrier-free environment

Entry into Portfolio

State level of SPP

Maturity level

100

General Information

Program Description

The program is aimed at the restoration, modernization and development of the railway infrastructure of Ukraine with a gauge of 1435 mm, as a key element of integration into the European transport system TEN-T, and a gauge of 1520 mm. The total operational length of the railway network of Ukraine is 19.8 thousand km, of which 45% is electrified. 

A separate focus of the program — development of European gauge infrastructure (1435 mm) in the western region of Ukraine for the development of four main European TEN-T transport corridors on the territory of Ukraine.

The program also covers the reconstruction of stations taking into account barrier-free requirements, updating the rolling stock fleet, and creating a Traffic Management Center (TMC) for digitalization and centralization of transportation management.

The program also covers the direction of International Technical Assistance and Strategic Partnership for the Sustainability and Restoration of Railway Infrastructure - which is aimed at ensuring the sustainable functioning, technological renewal and adaptation of the railway infrastructure of Ukraine to European standards thanks to the support of international financial organizations.

Strategic Case

Program Goal

Main Goal: Improvement of infrastructure condition
Secondary Goal: Modernization to comply with current standards, Improvement of service quality
Problems: As a result of the armed aggression of the Russian Federation, more than 18 thousand railway infrastructure facilities have been damaged or destroyed. About 9.3 thousand km of 1520 mm tracks are in a condition requiring major repairs. 74% of the contact network has exceeded the standard service life. Signaling, communication and centralization facilities have a critical level of wear, which directly affects traffic safety and regularity of transportation. The main problematic issues that need to be resolved to ensure the sustainable and safe functioning of railway transport today are: • a significant amount of destruction and damage to the railway transport infrastructure as a result of armed aggression; • lagging behind in the pace of major repairs of the railway transport infrastructure and the limited ability of JSC "Ukrzaliznytsia" to carry out repair work, taking into account the need to ensure the continuity of railway transport; • the need for accelerated development and modernization of infrastructure, including with a gauge of 1435 mm, in the direction of the border with the EU countries; • an acute shortage of materials and equipment critical for the restoration, maintenance and development of infrastructure, which significantly slows down the pace of implementation of infrastructure projects and leads to the use of expensive imports; • an outdated fleet of special rolling stock, infrastructure maintenance facilities and small mechanization; • lack of financial, technical and personnel capacity of domestic production and repair enterprises of the production and technological complex of railway transport, which is exacerbated by the decline in the prestige of production professions among young people; • the need to take into account modern standards, in particular barrier-free requirements, when building and modernizing railway transport infrastructure. The need for capital investments for the period until 2030 is over 235 billion UAH including VAT.

Strategic Relevance of the Program

Sector
Transport Sector
Subsector
Railway transport
Stream
Ensuring the sustainable functioning of railway transport by modernizing and developing the infrastructure of 1435 mm and 1520 mm standards, restoring damaged facilities and implementing technological solutions for the safety and continuity of transportation, as well as reconstructing stations to create a barrier-free environment
Strategic Document
National Transport Strategy of Ukraine until 2030
Task
1 Ensuring the sustainable functioning of railway transport by modernizing and developing the infrastructure of 1435 mm and 1520 mm standards, restoring damaged facilities and implementing technological solutions for the safety and continuity of transportation, as well as reconstructing stations to create a barrier-free environment

Program Objectives

Indicator
Baseline Value
Target Value

Number of stations where projects are being implemented to ensure barrier-free access and improve accessibility to railway infrastructure facilities for people with disabilities and other low-mobility population groups

0 units

8 units

Programme Sustainable Development Goals

Economic Case

Economic feasibility of the program

What are the main benefits expected from the implementation of the program for the economy, business, society, or individual industries?

Improving energy efficiency
Other benefits
Improving business conditions
Increasing employment levels, creating new jobs
Growth in production, market volumes of goods/services/investments
Reducing regional imbalances
Infrastructure development
Improving the quality of life of the population
Increase in budget revenues

Does the program objective provide for a contribution to the climate goal of mitigating the effects of climate change?

Reducing or avoiding greenhouse gas emissions
Reducing the use of fuel and energy resources

Does the program objective provide a contribution to the climate change adaptation objective: reducing the impact and/or reducing the vulnerability of an asset or population to one or more types of physical climate hazards?

Wind-related threats (change in wind regime; cyclone, hurricane, typhoon; storm, including blizzards, dust and sandstorms; tornado)
Threats associated with solid masses (coastal erosion; soil degradation; soil erosion; solifluction; avalanche; landslide; subsidence)
Temperature-related threats (changes in air, fresh water, seawater temperatures; heat stress; temperature fluctuations; heat waves; frost; forest fire)
Threats related to water resources (changes in the structure and types of precipitation (rain, hail, snow/ice); precipitation or hydrological variability; saltwater intrusion; sea level rise; water stress; drought, heavy precipitation (rain, hail, snow/ice); floods (coastal, river, pluvial, groundwater).

Does the programme objective provide for a contribution to the climate objective of sustainable use and protection of water and marine resources?

Increasing the efficiency of water resources use
Reducing the negative impact of urban and industrial wastewater discharges
Reducing drinking water pollution

Does the program objective provide for a contribution to the climate goal of transitioning to a circular economy?

Increasing the use of by-products and secondary raw materials, including by increasing the recyclability of products or waste
Reducing the content of hazardous substances and replacing substances of particular environmental concern in materials and products throughout their life cycle
Minimizing incineration and avoiding landfilling of waste
Development of waste management infrastructure
Reducing the use of primary raw materials
Preventing or reducing waste generation

Does the programme objective provide for a contribution to the climate objective of pollution prevention and control?

Preventing or reducing emissions of pollutants into air, water or soil
Improving air, water or soil quality
Preventing or minimizing the negative impacts of the production, use or disposal of chemicals

Does the program objective provide for a contribution to the climate goal of protecting and restoring biodiversity and ecosystems?

Nature conservation and biodiversity
Sustainable land use and management of land resources
Sustainable forest management

What social consequences are relevant for your program, after its implementation?

Increasing employment levels
Improving living conditions
Improving access to basic services
Reducing social inequality

Why is it advisable to implement projects in the format of one comprehensive program, and not separately?

Strengthening the overall impact through the interaction of individual projects within the program
Ability to simultaneously cover several interrelated aspects of a problem and ensure a systematic approach
Cost reduction through pooling of resources and centralized management
Implementing activities within a common or adjacent territory to achieve a more effective result
Ensuring coordinated planning, management and monitoring of projects within a single structure
The need to comply with legal requirements, government strategies or policies
Other

How will the program help strengthen other economic processes or reforms?

Optimization of logistics or production chains
Promoting the development of related sectors of the economy
Support for the implementation of state or sectoral reforms
Deepening integration into international economic processes
Stimulating digitalization and innovation
Other

Program Components

Financial justification

Total estimated program cost

99'819'121'580 UAH

Estimated cost of program components

95'065'830'000 UAH

Component

Amount

Resource and technological support for the uninterrupted and safe functioning of railway transport infrastructure

17'680'902'000 UAH

Restoration and modernization of the 1520 mm standard railway transport infrastructure

52'668'326'000 UAH

International technical assistance and strategic partnerships for the resilience and rehabilitation of railway infrastructure

1'760'262'000 UAH

Restoration of transport infrastructure

6'471'932'000 UAH

Construction and development of 1435 mm standard railway transport infrastructure

12'798'008'000 UAH

Reconstruction of railway station complexes to ensure their accessibility for people with disabilities and other low-mobility population groups

3'686'400'000 UAH

Additional expenses related to program preparation and implementation

4'753'291'580 UAH

Training costs

Year
Amount

1

436'414'180 UAH

2

810'031'660 UAH

3

1'130'199'950 UAH

Implementation costs

Year
Amount

1

436'414'180 UAH

2

810'031'660 UAH

3

1'130'199'950 UAH

Cost justification

Short description

Justification documents

n/a

FEO Justification of the direction of infrastructure_07082025.docx

Sources and mechanisms of financial support for the implementation of programs.

Status
Funding mechanisms
Coverage, %

Investment

Non-repayable financing. Direct budget financing. Direct expenditures from the state budget (public procurement).

79%

Reimbursable financing (funded by produced goods). Private financing (equity and raised funds). Production-sharing agreements.

19%

Non-repayable financing. Grant financing from existing international support projects, international technical assistance programs, and grants. Direct expenditures.

2%

Justification documents
To the documents
What potential funding sources can be mobilized on the basis of prior agreements or intentions to cooperate (if any)

After 2022, JSC Ukrzaliznytsia has launched active cooperation with international financial organizations and foreign partners to support the operation, restoration and development of railway transport. According to World Bank estimates (RDNA3 and RDNA4), the total needs of the transport sector for restoration are about 78 billion USD, of which more than 20 billion USD are for railway infrastructure. IFOs and governments of partner countries have already provided significant assistance: the European Investment Bank financed projects to modernize border railway crossings (€50 million), the French government - the supply of rails under a concessional loan, JICA - the supply of machinery and equipment, the EU and CEF - integration projects into the TEN-T network. Cooperation covers the development of border infrastructure, the purchase of special equipment, the modernization of traffic management systems, and increasing energy efficiency and sustainability of transportation. These areas of support allow not only to eliminate the consequences of destruction, but also to accelerate the European integration of Ukraine's railway system.

Management Case

Total program duration (months): 36

Approaches to project selection

Have approaches and criteria been defined for including public investment projects in the program, initiators of such projects, and their prioritization?

Yes

Organizational Measures

program implementation

32 months

selection of projects for implementation within the framework of the program

2 months

Program evaluation

1 months

Program development

1 months

Risk Assessment

Risk

Probability

Degree

Strategy

Risk

Lack of budget share of program financing

Probability

High

Degree

Critical

Strategy

Reduction

Risk

Lengthy approval and approval procedures during the implementation phase.

Probability

Medium

Degree

Considerable

Strategy

Reduction

Risk

High administrative burden and complexity of interagency interaction;

Probability

Medium

Degree

Considerable

Strategy

Reduction

Program Approval History

DateDecision NumberPortfolioProgram StatusDecisionReasonsMaturity level
13/08/2025SP-N-130825-B768FD0BState SPPreparationInclude--
01/10/2025SPP-N-011025-48ADBE4EState SPPPreparationInclude-100