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At its meeting on Dec. 25, the Cabinet reviewed the project and agreed to apply for a credit line of 55 million Euros from the European Investment Bank for construction of the Beskid Tunnel, the largest infrastructure project in Ukraine of the total construction cost 2.194 billion UAH, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.
The Ministry of Finance assessed the report of financial status of Ukrainian Railroads and considered it satisfactory to be given a credit of 55 million Euros by the European Investment Bank, provided that Ukrainian Railroads will ensure payment of at least 1.0% interest rate and of the state performance bond.
It should be noted that the European Bank for Reconstruction and Development, which provided a favorable credit in the amount of 40 million USD, is also involved in the Beskid Tunnel project.
“In the field of rail transport we have launched two projects of international scale this year. The first one is the start of construction of a new double-track railroad Beskid Tunnel in the Carpathians, which will help increase trade with Europe (the existing tunnel was built back in 19th century).
The second project is the “Broad track”. It involves Ukraine, Russia, Slovakia and Austria. A single continuous rail transport corridor from the Far East of Russia will be created,” said Olexander Vilkul, Deputy Prime Minister, noting that in future the transport corridor from the Asia-Pacific Region will allow for quick delivery of goods through Ukraine to the center of Europe, without reloading on a different gauge cars.
Experts stress that if it takes sea transport over 2 months to deliver cargo from the Far East and China to the center of Europe, the “Broad track” project will shorten this time to two weeks. To date, a feasibility study for the project is being developed to address all the technical issues of construction. According to experts, the “Broad track” project will increase rail traffic volume through Ukraine by 20 million tons.