Release date: 4 March 2013
Promoter – Financial Intermediary
UKRZALIZNYTSIALocation
Description
Construction of a new 1.8km double-track tunnel on the pan-European corridor V in South-West Ukraine.
Objectives
The project will replace the existing single track tunnel built in the 1880s which is the only single track section of line on the otherwise twin track electrified corridor between Lviv and the Hungarian border at Chop. The project is expected to deliver savings in vehicle operating costs by preventing the need for the expected increase in future traffic, particularly heavy freight of which about 20 million tonnes already passes each year, to divert to other longer routes given that current volume is close to or at available tunnel capacity. The project may also present some modest time, safety and environmental benefits plus result in reduced maintenance costs for the infrastructure manager. The project design is expected to be compliant with the principles of Commission Decision 2008/173/EC concerning the technical specification of interoperability relating to ‘safety in railway tunnels’.
Comments
This operation is covered by the EU Guarantee for EIB loans outside the EU.
Sector(s)
Proposed EIB finance (Approximate amount)
EUR 55 million
Total cost (Approximate amount)
EUR 163 million
Environmental aspects
If situated in the EU, the project would fall under Annex I of the Environmental Impact Assessment (EIA) Directive 2011/92/EU as the project entails the construction of a new section of long distance rail line. Therefore a full EIA procedure is required. The Bank shall review such procedure during appraisal. Overall, the project’s impacts on the environment during construction and operation are expected to be limited. A slight modal shift to rail thanks to an improved service level plus reduced trip lengths (by avoiding the potential diversion of traffic to longer routes) can be expected, thus also decreasing traffic-related GHG emissions.
Procurement
The Bank will require the promoter to ensure that implementation of the project will be done in accordance with the Bank’s Guide to Procurement.
Status
Signed - 7/05/2014
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).