Translated by Ollie Richardson
The result of the agreement between “Ukrzaliznitsya” and the American company General Electric to the amount of $1 billion will be the modernisation of the railway and its development.
This was stated by the President of Ukraine Petro Poroshenko at the fourth Baltic-Black Sea forum in Kiev, reports “112.ua”.
“But the most important thing is that the signing of the framework agreement will ensure long-term mutually beneficial cooperation between Kiev and Washington,” said the head of State.
According to him, this is one of those signals that testifies to Ukraine moving forward.
“This is convincing proof that we have returned to economic growth, that we are beginning to modernise the infrastructure, that Ukraine is a reliable partner. This is the largest deal for many years,” added Poroshenko.
The President thanked the Ministry of Infrastructure, Ukreximbank, the Presidential Administration, and the Investment Council for their active work in preparing the signing of the agreement.
General Electric Transportation will deliver to “Ukrzaliznitsya” 200 locomotives and will upgrade 75 locomotives belonging to the railway department over 7 years. The entire project will cost the US $1 billion.
Former Deputy Minister of Infrastructure Aleksandr Kava said that Ukraine does not need the American locomotives, and that they were purchased at a price of $2 million per unit more than their market value.
He stated this in an interview with the blogger Anatoly Shariy.
“If we look at the deal that was concluded between General Electric and Indian Railways, 1,000 locomotives were bought for $2.5 billion, i.e., the cost of one locomotive was $2.5 million,” said Kava.
While for Ukraine, the locomotives will be purchased for $4-4.5 million
Also, according to the former Deputy Minister for Ukraine it is more favorable to not buy locomotives abroad, but to repair in large quantities the ones that “Ukrzaliznitsya” already have.
Kava also noted that the locomotives of the American campaign will be purchased without an open tender, where competitors of General Electric could also participate.
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