Ensuring the efficiency and continuity of passenger and freight transportation through the purchase and modernization of rolling stock, restoration of transport mobility

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

Entry into Portfolio

State level of SPP

Maturity level

General Information

Program Description

The program is aimed at updating and expanding the fleet of passenger and freight rolling stock to ensure continuous, safe and high-quality transportation. The program also provides for the restoration and development of the production capacity of railway transport at a new technological level in accordance with EU standards, meeting the needs of the population and economy of Ukraine in transportation, increasing the defense capability and competitiveness of the state. The program provides for the purchase of trains for long-distance connections, modernization and updating of the fleet of locomotives, as well as creating conditions for attracting investments and developing national engineering. An important direction is the development of international routes, which have already demonstrated a significant increase in passenger traffic due to the reorientation of travel to rail transport. The program will also contribute to the development of the freight market, updating the fleet of freight cars and locomotives, which will allow maintaining the leading role of the railway in domestic and export transportation, increasing the efficiency of logistics and the competitiveness of the Ukrainian economy.

Strategic Case

Program Goal

Main Goal: Improvement of service quality

Secondary Goal: Modernization to comply with current standards, Expansion of capacities

Problems: Passenger rolling stock • Deterioration: significant moral and physical wear and tear of wagons and trains, which are often operated beyond the regulatory period, which worsens the quality of transportation. • Modernization: there is an urgent need to update the rolling stock in accordance with modern standards of comfort, safety and barrier-free requirements for low-mobility groups. • Financing: acute shortage of funds for renewal due to the unprofitability of passenger transportation and the social role performed by JSC "Ukrzaliznytsia", which makes it impossible to attract private investors. • Production capacity: limited financial, technical and personnel capabilities of Ukrainian factories and repair enterprises of the railway complex. • Producer market: there is virtually no production of passenger locomotives in Ukraine. Freight rolling stock • Deterioration: significant moral and physical wear and tear of freight wagons, the average age of the fleet is over 40 years, with wear and tear up to 96%. • Renewal: the need for rapid replacement of wagons due to expected retirement after the lifting of the ban on extension of service life. • Modernization: the need to renew rolling stock taking into account environmental requirements and safety standards. • Locomotives: the shortage of serviceable locomotives leads to regular delays in transportation, negatively affects the rhythm of logistics. • Production capacity: lack of financial, technical and personnel capacity of Ukrainian manufacturers and repair companies. • Producer market: lack of a competitive market for freight wagon manufacturers in Ukraine and lack of production of electric locomotives.

Strategic Relevance of the Program

Sector

Transport Sector

Subsector

Railway transport

Stream

Strategic Document

National Transport Strategy of Ukraine until 2030

Task

3 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

Program Objectives

Indicator

Baseline Value

Target Value

Economic Case

Program Components

Component ID

DREAM-02-ЗМПВРС

Procurement and modernization of freight rolling stock fleet

Justification

The implementation of the component will meet the urgent needs of Ukrainian railway transport in the renewal of freight rolling stock. Renewal of the freight rolling stock fleet will improve the quality of services, which will contribute to the growth of demand for rail freight transportation. Measures for the physical protection of rolling stock from enemy UAV attacks can be implemented within the framework of the component. Renewal of the freight rolling stock fleet will improve freight transportation logistics and their efficiency. In addition, the component will contribute to the development of domestic engineering and the introduction of innovative technologies. Implementation within the framework of the program will allow for the comprehensive attraction of external financing, will ensure greater transparency and accountability for donors and the state. Interaction between individual projects allows for the coordinated renewal of rolling stock associated with different segments of transportation, which enhances the effect for freight logistics, improves the use of infrastructure and increases the economic efficiency of the entire program.

Year

Amount

2'419'000'000 UAH

1'211'000'000 UAH

7'290'000'000 UAH

Component ID

DREAM-03-ВПРС

Restoration of damaged rolling stock and facilitation of the return of residents to frontline regions

Justification

The implementation of the component will help meet the urgent needs for rail passenger transportation in the frontline regions of Ukraine. The lack of high-quality transport connections is becoming a serious barrier to the restoration of normal life in the regions most affected by the fighting. Special attention should be paid to the restoration of rolling stock and routes in the frontline regions. In order to restore the social and economic life of these territories, create conditions for the return of the population from evacuation, as well as provide comfortable, accessible and safe transport, it is necessary to update the rolling stock for rail transportation. This will ensure the sustainability of the connection, increase the mobility of the population and stimulate economic growth in the regions most affected by the fighting. Measures to physically protect rolling stock from enemy UAV attacks can be implemented within the framework of the component. In addition, the component will contribute to the development of domestic engineering and the introduction of innovative technologies. Implementation within the framework of the program will allow for a comprehensive attraction of external financing, ensuring greater transparency and accountability for donors and the state. Interaction between individual projects allows for a coordinated renewal of rolling stock related to different transportation segments, which enhances the effect for passenger mobility, improves the use of infrastructure and increases the economic efficiency of the entire program

Year

Amount

525'175'000 UAH

575'916'000 UAH

609'884'000 UAH

Component ID

DREAM-01-ЗМППРС

Purchase and modernization of passenger rolling stock fleet

Justification

The implementation of the component will meet the urgent needs of Ukrainian railway transport in the renewal and modernization of passenger rolling stock. Renewal of the passenger rolling stock fleet will improve the quality of services, which will contribute to the growth of demand for rail passenger transportation by the population of Ukraine. Within the framework of the component, measures can be implemented to physically protect rolling stock from enemy UAV attacks. The development of the railway makes travel safer, more comfortable and more accessible for different segments of the population, improves access to transport for low-mobility groups and residents of remote regions. In addition, the component will contribute to the development of domestic mechanical engineering and the introduction of innovative technologies. Implementation within the framework of the program will allow for a comprehensive attraction of external financing, ensuring greater transparency and accountability for donors and the state. Interaction between individual projects allows for a coordinated renewal of rolling stock related to different transportation segments, which enhances the effect for passenger mobility, improves the use of infrastructure and increases the economic efficiency of the entire program.

Year

Amount

2'487'000'000 UAH

7'126'900'000 UAH

9'458'200'000 UAH

Financial justification

Total estimated program cost

31'703'075'000 UAH

Estimated cost of program components

31'703'075'000 UAH

Component

Amount

Procurement and modernization of freight rolling stock fleet

10'920'000'000 UAH

Restoration of damaged rolling stock and facilitation of the return of residents to frontline regions

1'710'975'000 UAH

Purchase and modernization of passenger rolling stock fleet

19'072'100'000 UAH

Cost justification

Short description

Justification documents

n/a

2_2_Appendix 2 Direction of cables and belts of mobile structure_correction1.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).

17%

Blended financing. Debt financing (attracted by a state-owned unitary enterprise or a commercial company, more than 50% of the share capital of which belongs to the state, excluding banks) and grant financing. Concessional debt financing with a state guarantee and grant.

50%

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

33%

Justification documents

To the documents

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

Consultations are currently underway with the US EXIM Bank regarding financing the purchase of 40 freight diesel locomotives manufactured by the American company Wabtec.

Management Case

Total program duration (months): 3

Organizational Measures

program implementation

32 months

selection of projects for implementation within the framework of the program

2 months

program evaluation

1 months

program preparation

1 months

Risk Assessment

Risk

Probability

Degree

Strategy

Risk

High administrative burden and complexity of interagency interaction;

Probability

Medium

Degree

Considerable

Strategy

Reduction

Risk

Lengthy approval and approval procedures during the implementation phase

Probability

Medium

Degree

Considerable

Strategy

Reduction

Risk

lack of budget share of program financing

Probability

High

Degree

Considerable

Strategy

Reduction

Program Approval History

DateDecision NumberPortfolioProgram StatusDecisionReasonsMaturity level

14/08/2025SP-N-140825-68720F54State SPPreparationInclude--

01/10/2025SPP-N-011025-E256FD05State SPPPreparationInclude-90