Ukraine will apply to Korea for loan to buy 20 Hyundai electric trains
The draft letter of the government of Ukraine to the government of the Republic of Korea on providing a loan for the implementation of the public investment project "Purchase of 20 high-speed electric trains of Korean production" was approved by the Cabinet of Ministers at a meeting on September 10.
"The signing of the letter will ensure the purchase of 20 high-speed electric trains of Korean production at the expense of a preferential loan from the Economic Development Cooperation Fund (EDCF) to meet the needs of JSC Ukrzaliznytsia in interregional and international passenger transportation," said the representative of the Cabinet of Ministers in the Verkhovna Rada, Taras Melnychuk, on Telegram.
The Verkhovna Rada ratified the framework agreement between the governments of Ukraine and the Republic of Korea on loans from the Economic Development Cooperation Fund for 2024-2029, which opens up the possibility for Ukrzaliznytsia to purchase another 20 Intercity+ class electric trains
As reported, in August last year, the Verkhovna Rada ratified the framework agreement between the governments of Ukraine and the Republic of Korea on loans from the EDCF for 2024-2029, which opens up the possibility for Ukrzaliznytsia to purchase another 20 Intercity+ class electric trains manufactured by Hyundai Rotem, in addition to the 10 that were purchased before Euro 2012.
At that time, it was noted that the next steps would include agreeing on the details of the project and the agreement at the Cabinet of Ministers level and the final signing of the agreement. According to preliminary agreements, the total cost of the program will be about $450 million, including train maintenance for five years. The trains are expected to be delivered within 18-24 months after the agreement is signed.
According to Ukrzaliznytsia, the lending terms are preferential given the criticality of the social component of the project (the total term is up to 40 years, the loan principal will begin to be repaid after the first 10 years).
"This is an additional opportunity for 6 million passengers to travel per year, which will cover today's need for daytime high-speed traffic," Yevhen Liaschenko, who was the company's chairman of the board at the time, commented on the possible purchase.
In August of this year, Ukrzaliznytsia announced plans to increase the share of daytime high-speed traffic to 30% in three years and to 40% in 5 years, while currently it averages 12-15%. An important part of their implementation is the purchase of 20 new Hyundai electric trains.
Later this month, a Russian strike put one of the 10 Hyundai trains out of service.
