Ukraine intends to purchase 40 Wabtec locomotives from US
Ukraine is again considering purchasing 40 locomotives manufactured by Wabtec for credit funds from the Export-Import Bank of the United States (Exim Bank).
Source: Liga.net, citing Ukraine’s Ministry of Infrastructure
Details: It is noted that structuring the project and signing agreements are planned until the end of 2024.
The ministry explained that the interest rate on this loan is expected to be no higher than that applied when raising funds from loans from international financial organisations, such as the European Investment Bank, the European Bank for Reconstruction and Development and the World Bank.
Bridget Brink, US Ambassador to Ukraine, says that the agreement opens the door for cooperation between Ukraine and the United States in the field of private business.
Exim Bank has approved the transaction as part of a deal to buy 40 locomotives, said Reta Jo Lewis, President and Chairwoman of the US Exim Bank. She added that it is very important that the locomotives get on the rails right now and start working.
Background:
- In December, Ukraine’s Ministry of Infrastructure announced that the American company General Electric will supply Ukrzaliznytsia (Ukrainian Railways) with another 40 locomotives of its production in 2020.
- Ukrzaliznytsia needs UAH 51.2 billion (approx. US$1.3 billion) over six years to upgrade its locomotive fleet, with only 5.3% of locomotives being less than 25 years old.
- The first stage of the deal involves the delivery of 30 TE33A Evolution freight locomotives manufactured in the United States and the localisation of a certain part of production in Ukraine, which is 10% of the final transaction value. General Electric will use the Ukrainian signal and radio system and certain cabin elements at this stage.
- The cost of locomotives is US$4.68 million (including VAT) each. The contract amount [of the first batch - Ekonomichna Pravda] is US$140 million with VAT.
Support UP or become our patron!
