Development of public electric transport and infrastructure

Sector

Transport Sector

Stream

Comprehensive development of public transport and urban infrastructure

Entry into Portfolio

State level of SPP

Maturity level

General Information

Program Description

The program is aimed at modernizing urban electric transport systems in Ukrainian communities, in particular by updating infrastructure, rolling stock and management systems. The main goal of the program is to improve the quality, safety and energy efficiency of passenger transport in cities, reduce harmful emissions and bring Ukrainian cities closer to modern European mobility standards, as well as restore and modernize urban electric transport damaged as a result of military operations. The program covers a range of measures, including major repairs of tram and trolleybus lines, modernization of the contact network, traction substations, as well as the construction of new electric transport routes in areas with insufficient transport coverage. In addition, one of the key areas is the renewal of rolling stock - the purchase or modernization of trams, trolleybuses and electric buses taking into account the needs of low-mobility groups of the population, as well as the purchase of special equipment. The program will help overcome the imbalance between modern mobility requirements and the actual state of the infrastructure, ensure stable operation of electric transport - in particular in the conditions of a significant increase in the load caused by the full-scale invasion of the Russian Federation and the movement of a significant number of internally displaced persons, and will also contribute to the restoration of the competitive advantages of electric transport compared to private cars. Financing for the program can be formed from various sources: funds from international financial organizations and other credit institutions, including funds from governments of other countries, the state budget, as well as contributions from local budgets and own resources of municipal enterprises.

Strategic Case

Program Goal

Main Goal: Modernization to comply with current standards

Secondary Goal: Ensuring inclusiveness and equal opportunities, Modernization to comply with current standards, Improvement of service quality, Improvement of infrastructure condition, Contribution to climate or environmental goals

Problems: Current status, description of problems and needs for their solution Ukrainian cities are facing a systemic crisis in the field of electric public transport. The main challenges include: 1. Worn out infrastructure. Most tram and trolleybus tracks, as well as the contact network, are in critical condition. Tram tracks have cracks, wavy wear of rails, destruction of concrete slabs and channels. The contact network, which has been in operation for over 30 years, has suffered significant damage, partially lost its waterproofing, which causes water stagnation, and Russian shelling has caused additional damage to it and increased the risk of a complete power outage. As of 2025, the tram contact network is 1,880.5 km, of which 459.7 km are in temporarily occupied territories. The length of tram tracks is 1855.56 km, of which 459.56 km are also occupied. The trolleybus network is 4469.14 km, of which 998.1 km are in temporarily occupied territories. The total number of tram depots is 29 (10 in occupation), trolleybus depots are 52 (19 in occupation). An equally important aspect is the wear and tear of the traction substations of the contact network, of which there are 689, 181 of which are in temporarily occupied territories, as well as Most of these facilities have not undergone major renovation since construction. This has led to deep physical wear and tear of metal structures, fasteners, contact wires, insulators and supports, which reduces the speed of transport, causes restrictions in operation, and also makes it impossible to use modern low-floor rolling stock. 2. Outdated rolling stock. Only a small part of the transport is up to 10 years old - approximately 4.5% of trams and 31% of trolleybuses. The bulk is outdated, more than 30-40 years in use, with high repair costs and safety risks. In particular, as of 2025, the total number of tram cars in Ukraine is 2,543 units. Only 136 (5.3%) of them were manufactured in 2015-2024, another 115 (4.5%) - in 2005-2014. Thus, over 20 years, only 9.8% of the tram fleet has been renewed with a standard operating life of 20 years. At the same time, 1,336 trams (53%) were delivered in the period 1981-1990. In the trolleybus segment, out of 3,933 units, only 1,227 (31%) are under 10 years old, and another 1,153 (29%) are 10–20 years old. This means that about 40% of trolleybuses have been in operation for more than 20 years — at the limit of their service life, and 60% of trolleybuses should already be decommissioned and not be operated. In addition, only 228 trams (9%) and 1,596 trolleybuses (40.6%) are low-floor or partially low-floor, which limits access to transport for people with disabilities, the elderly, and parents with strollers. Currently, there are 42,050 registered buses, of which 4 provide services with an environmental level of Euro 0 - 120, Euro 1 - 29,251, Euro 2 - 2,632, Euro 3 - 1,385, Euro 4 - 474, Euro 5 - 4,508, Euro 6 - 577, Unspecified - 3,103, buses with an environmental level of Euro - 0 - Euro - 2 account for 76.1% of the total. 3. Limited capacity of the route network. In many cities, public transport does not cover new residential areas, which causes the need for transfers or stimulates the use of private cars. There are 483 trolleybus routes, 86 of which are in the temporarily occupied territory of Ukraine, and 162 tram routes, 29 of which are in the temporarily occupied territory of Ukraine. 4. High motorization and simultaneous underfunding of public transport lead to duplication of routes, congestion, and reduced competitiveness of trams and trolleybuses. 5. Insufficient environmental and social orientation. Old vehicles do not meet environmental standards, have high noise and energy consumption, and do not provide barrier-free access. 6. Organizational problems during emergencies. The war caused frequent disruptions in transport during air raids, power outages, and resource shortages. A particular problem is the operation of autonomous trolleybuses - their charging requires working contact areas. Due to network wear, simultaneous charging of several units creates a double load that cannot be supported by old lines. Consequences. Frequent accidents, delays, and high maintenance costs significantly reduce the quality of transportation and the attractiveness of electric transport for the population.

Strategic Relevance of the Program

Sector

Transport Sector

Subsector

Public Transport

Stream

Comprehensive development of public transport and urban infrastructure

Strategic Document

National Transport Strategy of Ukraine until 2030

Task

2 Comprehensive development of public transport and urban infrastructure

Program Objectives

Indicator

Baseline Value

Target Value

Overhaul of traction substations of electric transport

0 units

315 units

Construction of depots and repair facilities

0 units

2 units

Major repairs / reconstruction of tram tracks

0 km

1546.6 km

New construction of trolleybus lines

0 km

5 km

Purchase of new trams

0 units

1684 units

Overhaul of the tram network and 600 V cable lines

0 km

1573.22 km

Deep reconstruction of tram depots

0 units

36 units

New construction of the overhead cable tram network

0 km

138.8 km

Major repairs of the trolleybus network and 600 V cable lines

0 km

3481.89 km

Deep reconstruction of the tram

0 units

50 units

Major repairs / reconstruction of trolleybus lines

0 km

3471.07 km

Overhaul of the overhead cable tram network

0 km

1546.6 km

Construction and launch of a charging station for electric buses with a minimum charging current of 25 A

0 units

40 units

Purchase of new electric buses with a carrying capacity of 80+ passengers

0 units

940 units

New tram track construction

0 km

138.8 km

Purchase of new autonomous trolleybuses

0 units

1561 units

Purchase of new trolleybuses

0 units

4165 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?

None of the options are applicable

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 use of primary raw materials

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

No contribution is provided.

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

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

Enhancing public participation

Increasing employment levels

Improving living conditions

Improving access to basic services

Other social consequences

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

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

Program Components

Component ID

DREAM-101

Purchase of new trams

Justification

Ensuring efficient passenger transportation on routes with high passenger traffic by purchasing new trams with a carrying capacity of at least 300 people and a 100% barrier-free low-floor design, which provides full access for people with reduced mobility and high mobility for boarding and disembarking passengers.

Year

Amount

7'920'000'000 UAH

11'920'000'000 UAH

13'440'000'000 UAH

15'040'000'000 UAH

15'840'000'000 UAH

16'640'000'000 UAH

17'440'000'000 UAH

18'240'000'000 UAH

Component ID

DREAM-220

Major repairs of the trolleybus network and 600 V cable lines

Justification

Restoring reliable power supply to the trolleybus network by overhauling 600 V cable lines that transmit electricity from traction substations to the contact network, which is critical for the stable operation of both conventional and autonomous trolleybuses.

Year

Amount

469'000'000 UAH

491'750'000 UAH

865'480'000 UAH

1'117'690'000 UAH

1'788'290'000 UAH

3'359'720'000 UAH

3'359'020'000 UAH

6'202'840'000 UAH

Component ID

DREAM-301

Purchase of electric buses.

Justification

Promoting the decarbonization of public transport in cities without a developed electric transport network by purchasing electric buses with a working climate system (for 14 hours), a range of at least 300 km and a carrying capacity of 80 passengers, ensuring environmentally friendly and comfortable transportation.

Year

Amount

2'820'000'000 UAH

1'880'000'000 UAH

940'000'000 UAH

Component ID

DREAM-430

Overhaul of traction substations of electric transport

Justification

Ensuring stable and uninterrupted power supply to the tram and trolleybus network and charging infrastructure for electric buses by overhauling traction substations, which are key elements of electric transport power supply and determine its energy efficiency and reliability.

Year

Amount

120'000'000 UAH

1'080'000'000 UAH

2'400'000'000 UAH

2'100'000'000 UAH

1'800'000'000 UAH

Component ID

DREAM-150

Major repairs / reconstruction of tram tracks

Justification

Improving the safety, speed and energy efficiency of tram traffic by restoring the technical condition of worn tracks

Year

Amount

2'359'000'000 UAH

8'659'000'000 UAH

10'822'000'000 UAH

12'992'000'000 UAH

10'822'000'000 UAH

10'640'000'000 UAH

Component ID

DREAM-441

Construction of depots and repair facilities

Justification

Ensuring effective operation, maintenance and storage of modern electric transport (trams, trolleybuses, electric buses) by building new depots and repair facilities adapted to the technical requirements of new rolling stock.

Year

Amount

250'000'000 UAH

1'000'000'000 UAH

1'250'000'000 UAH

1'500'000'000 UAH

500'000'000 UAH

Component ID

DREAM-300

Construction and launch of a charging station for electric buses

Justification

Creating infrastructure for the full functioning of electric buses by building and launching charging stations necessary for the regular and stable operation of electric transport.

Year

Amount

120'000'000 UAH

80'000'000 UAH

40'000'000 UAH

Component ID

DREAM-120

Overhaul of the tram network of 600 V cable lines

Justification

Restoration of reliable power supply to tram traffic by replacing worn-out 600 V cable lines that provide power transmission from traction substations to the contact network.

Year

Amount

219'240'000 UAH

808'220'000 UAH

1'070'930'000 UAH

1'273'020'000 UAH

1'363'950'000 UAH

1'192'170'000 UAH

1'175'020'000 UAH

Component ID

DREAM-100

Deep reconstruction of trams

Justification

Extending the service life of trams, reducing energy consumption by up to 30% by replacing the control system, as well as adapting transport to the needs of low-mobility groups through the reconstruction of the interior, entrance and updating equipment in accordance with modern standards.

Year

Amount

80'000'000 UAH

Component ID

DREAM-151

New tram track construction

Justification

Providing access to electric public transport in new neighborhoods by expanding the tram network.

Year

Amount

644'000'000 UAH

1'624'000'000 UAH

1'946'000'000 UAH

Component ID

DREAM-110

Overhaul of the overhead cable tram network

Justification

Ensuring stable power supply for trams and trolleybuses by updating the contact network, as a worn-out network limits throughput and makes it impossible to fully load the rolling stock on the relevant section

Year

Amount

404'260'000 UAH

886'420'000 UAH

1'267'720'000 UAH

1'521'920'000 UAH

1'267'720'000 UAH

1'246'400'000 UAH

Component ID

DREAM-210

Major repairs / reconstruction of trolleybus lines

Justification

Ensuring reliable and stable operation of trolleybuses, including autonomous trolleybuses, through major repairs or reconstruction of the contact network, which is the main source of power during movement and recharging. The restored network will avoid overloads, ensure sufficient speed and efficient operation of electric transport.

Year

Amount

266'960'000 UAH

611'200'000 UAH

1'388'800'000 UAH

2'221'600'000 UAH

4'165'600'000 UAH

5'228'800'000 UAH

Component ID

DREAM-201.1

Purchase of new trolleybuses

Justification

Increasing the share of autonomous trolleybuses in cities with a developed trolleybus network to expand routes without additional construction of contact infrastructure. The purchase of such trolleybuses with a carrying capacity of 100–150 passengers and a 100% barrier-free low-floor design ensures full access for people with reduced mobility, quick boarding and disembarking of passengers, and from a budget point of view, a 30% lower cost compared to electric buses.

Year

Amount

2'340'000'000 UAH

4'680'000'000 UAH

7'020'000'000 UAH

9'360'000'000 UAH

10'320'000'000 UAH

10'770'000'000 UAH

Component ID

DREAM-111

New construction of the overhead cable tram network

Justification

Providing power supply to new tram routes by building a modern contact network with sufficient capacity for safe and stable transport operation.

Year

Amount

75'440'000 UAH

190'240'000 UAH

227'960'000 UAH

Component ID

DREAM-211

New construction of trolleybus lines

Justification

Optimization of the existing trolleybus route network by building new lines and intersections within the existing infrastructure to increase traffic flexibility, connection efficiency, and reduce transfers, taking into account the use of autonomous trolleybuses in new areas.

Year

Amount

8'000'000 UAH

Component ID

DREAM-201

Purchase of new trolleybuses

Justification

Improving the quality and accessibility of urban transportation by purchasing new trolleybuses with a carrying capacity of 100–150 passengers and a 100% barrier-free low-floor design, which ensures full access for people with reduced mobility and high speed of boarding and disembarking passengers.

Year

Amount

6'854'000'000 UAH

7'406'000'000 UAH

5'704'000'000 UAH

Component ID

DREAM-140

Deep reconstruction of tram depots

Justification

Ensuring conditions for servicing modern rolling stock through in-depth reconstruction of tram depots with the renewal of engineering infrastructure, technological equipment and adaptation to new technical standards and new types of trams

Year

Amount

50'000'000 UAH

200'000'000 UAH

250'000'000 UAH

300'000'000 UAH

100'000'000 UAH

Financial justification

Total estimated program cost

486'134'610'000 UAH

Estimated cost of program components

486'134'610'000 UAH

Component

Amount

Purchase of new trams

134'720'000'000 UAH

Major repairs of the trolleybus network and 600 V cable lines

24'373'230'000 UAH

Purchase of electric buses.

18'800'000'000 UAH

Overhaul of traction substations of electric transport

18'900'000'000 UAH

Major repairs / reconstruction of tram tracks

108'262'000'000 UAH

Construction of depots and repair facilities

9'000'000'000 UAH

Construction and launch of a charging station for electric buses

800'000'000 UAH

Overhaul of the tram network of 600 V cable lines

11'012'540'000 UAH

Deep reconstruction of trams

400'000'000 UAH

New tram track construction

9'716'000'000 UAH

Overhaul of the overhead cable tram network

12'682'120'000 UAH

Major repairs / reconstruction of trolleybus lines

27'768'560'000 UAH

Purchase of new trolleybuses

46'830'000'000 UAH

New construction of the overhead cable tram network

1'138'160'000 UAH

New construction of trolleybus lines

40'000'000 UAH

Purchase of new trolleybuses

59'892'000'000 UAH

Deep reconstruction of tram depots

1'800'000'000 UAH

Cost justification

Short description

Justification documents

n/a

Initial calculations. estimate.xlsx

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

Status

Funding mechanisms

Coverage, %

Investment

Blended financing. Private financing (equity and raised funds) with state support in the form of co-financing from direct budgetary funding or grant financing. Concession, where the majority of the investments made can be reimbursed from user (consumer) payments, and the remainder (less than 50% of the project cost) is covered through grant co-financing or co-financing from the state budget (usually as non-repayable co-financing of a portion of the project’s capital expenditures during the construction period).

100%

Justification documents

To the documents

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

a combination of long-term loans from IFIs (EIB, EBRD), grants (Korea International Cooperation Agency (KOICA), EU donors), state and local budgets. At present, the final sources of financing for the program have not been determined. Negotiations are underway with the Korea International Cooperation Agency (KOICA) regarding the possible provision of grant funds in the amount of 5 to 15 million USD to finance infrastructure measures and rolling stock renewal, starting in 2027. In addition, the Program provides for the coverage of tax liabilities from local budgets. Other sources of financing (including attracting credit resources from international financial organizations and/or budget financing) will be determined based on the results of further negotiations with potential partners and in accordance with the capabilities of the state budget.

Management Case

Total program duration (months): 120

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?

Organizational Measures

Program implementation

120 months

Program preparation

12 months

Risk Assessment

Risk

Probability

Degree

Strategy

Risk

Rising costs of materials and work due to inflation or exchange rate fluctuations.

Probability

Medium

Degree

Considerable

Strategy

Reduction

Risk

Insufficient institutional capacity of local governments

Probability

Medium

Degree

Considerable

Strategy

Avoidance

Risk

Delays in the delivery of equipment, materials or rolling stock due to production or logistical problems.

Probability

Medium

Degree

Critical

Strategy

Avoidance

Risk

Delay or incomplete funding from the state budget or donors.

Probability

High

Degree

Critical

Strategy

Reduction

Risk

Instability of management personnel / political changes in communities.

Probability

Medium

Degree

Considerable

Strategy

Avoidance

Risk

The need for additional approvals and environmental assessments, which may delay the completion of the work.

Probability

Low

Degree

Considerable

Strategy

Avoidance

Risk

Possible social tension among residents during construction or reconstruction (noise, street closures)

Probability

Low

Degree

Considerable

Strategy

Reduction

Program Approval History

DateDecision NumberPortfolioProgram StatusDecisionReasonsMaturity level

13/08/2025SP-N-130825-3E12FD58State SPPreparationInclude--

01/10/2025SPP-N-011025-1B44430BState SPPPreparationInclude-85