Early Warning System

Countries

Ukraine

Geographic location where the impacts of the investment may be experienced.

Financial Institutions

European Bank for Reconstruction and Development (EBRD)

International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.

Project Status

Proposed

Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.

Bank Risk Rating

Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."

Voting Date

Oct 22, 2024

Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.

Borrower

UKRAINIAN RAILWAYS PJSC

A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.

Sectors

Transport

The service or industry focus of the investment. A project can have several sectors.

Investment Type(s)

Loan

The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.

Investment Amount (USD)

$ 329.88 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 300
Converted using 2024-08-13 exchange rate.

Project Cost (USD)

$ 525.92 million

Bank Documents

Translation: Ukraine - UZ Electric Locomotives (Ukrainian)

Primary Source

Original disclosure @ EBRD website

Updated in EWS Aug 25, 2024

Disclosed by Bank Aug 13, 2024

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Project Description

If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the project consists of the provison of a sovereign guaranteed loan of up to EUR 300 million, to provide emergency capex financing to the JSC "Ukrainian Railways" ("UZ"). The loan may be tranched into a committed tranche of up to EUR 120 million, and uncommitted tranches of up to EUR 180 million in aggregate, reflecting the implementation timeline. Tenor and grace period: the loan tenor will be up to 18 years, including an up to 4-year grace period on principal repayments.

The Project will be supported by a parallel investment grant of up to USD 195 million from the Government of the United States, administered by the World Bank through the Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund (URTF) as part of the Repairing Essential Logistics Infrastructure & Network Connectivity (RELINC) Project.

A significant number of the Company's electric locomotives are already reaching the end of their extended service life and will be decommissioned in the near future due to wear and tear and metal degradation, thus reducing the Company's ability to cope with market demand for railway transportation services. In the current crisis environment triggered by the war on Ukraine, the emergency capex program will support addressing the Company's critical needs to renew its operating fleet and ensure continuity of its operations.

Early Warning System Project Analysis

For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

Categorised B (2019 ESP) and High-Medium risk.

Investment Description

Here you can find a list of individual development financial institutions that finance the project.

European Bank for Reconstruction and Development (EBRD)

A sovereign guaranteed loan of up to EUR 300 million. The loan may be tranched into a committed tranche of up to EUR 120 million, and uncommitted tranches of up to EUR 180 million in aggregate, reflecting the implementation timeline. Tenor and grace period: the loan tenor will be up to 18 years, including an up to 4-year grace period on principal repayments.

Private Actors Description

A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

PJSC "Ukrainian Railways" is a vertically-integrated national railway operator in Ukraine, wholly owned by the Government of Ukraine. UZ is a regulated monopoly provider of rail transportation in Ukraine and operates Ukraine's circa 20 thousand kilometre-long railway network and related infrastructure. UZ is one of Ukraine's largest employers and single contributors to Ukraine's GDP.

Private Actor 1	Private Actor 1 Role	Private Actor 1 Sector	Relation	Private Actor 2	Private Actor 2 Role	Private Actor 2 Sector
-	-	-	-	Public Joint Stock Company Ukrainian Railway (Ukrzaliznytsia)	Client	-

Contact Information

This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

COMPANY CONTACT INFORMATION

Volodymyr Shemayev, Deputy Director of Corporate Finance Department
Shemayev.V.V@uz.gov.ua
+380443096847
https://www.uz.gov.ua/
5 J.Giedroyc St., Office 208, Kyiv, 03150 Ukraine

ACCESS TO INFORMATION

You can request information by emailing: accessinfo@ebrd.com or by using this electronic form: https://www.ebrd.com/eform/information-request

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent.

You can contact the PCM at: pcm@ebrd.com or you can submit a complaint online using an online form at: http://www.ebrd.com/eform/pcm/complaint_form?language=en

You can learn more about the PCM and how to file a complaint at: http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html