Ukraine to receive funding from EU under Connecting Europe Facility to develop border crossings with 4 European countries
MOSCOW. June 23 (Interfax) - Projects submitted by Ukraine for the development of border crossings with Poland, Romania, Slovakia, and Hungary have been approved for funding under the European Union's Connecting Europe Facility, (CEF), Ukrainian media reported with reference to Ukraine's Ukrzaliznytsia state railway company (Ukrainian Railways, or UZ).
"The European Union will invest in the development of Ukraine's railway infrastructure. The funding under CEF will be provided for the development of border crossings with the Republic of Poland, Romania, the Slovak Republic, and Hungary," it said.
The funding will be provided to develop the Yagodin-Dorohusk and Mostiska 2 - Medyka crossings with Poland, the Chop-Cierna nad Tisou crossing with Slovakia, and the Chop-Zahony crossing with Hungary. "There are plans to build an intermodal terminal and the related infrastructure at the Chop station," it said.
The project also envisions the reconstruction of 1,435-mm tracks at the Vadul-Siret and Glyboka-Bukovinskaya stations under joint projects with Romania.
The size of the funding approved under the CEF for said projects has not been reported, while UZ applied for 47 million euros.
"It's the first time in history that the EU provides funding on a non-refundable basis for the implementation of railway projects in Ukraine. We are developing the most promising crossings with EU countries, whose infrastructure requires modernization," the press service quoted UZ Chairman Yevgeny Lyashchenko as saying.
Ukraine is actively working on integrating its railway infrastructure into the European Union, Lyashchenko said. "While we have already started implementing a number of such projects, now we need systemic support from our international partners and financial institutions," he said.
The statement said referring to UZ Strategy and Transformation Department Director Oleg Yakovenko that the company would submit the next package of projects for a tender in September. As CEF is a new tool for Ukraine and UZ, it submitted its application together with the neighboring countries in the current tender, he said.
"The next submission of projects will be in September this year, and this is when we will determine and propose projects for investments to the EU ourselves. Our plans include the development of TEN-T railway corridors with 1,435-mm European gauge tracks to develop freight and passenger communication with the European Union," Yakovenko said.
As reported earlier, Ukrainian Deputy Prime Minister and Reconstruction Minister Alexander Kubrakov and European Commissioner for Transport Adina Valean signed an agreement on Ukraine's participation in CEF, opening the way for Ukraine to receive funding under this program with a total budget of about 21 billion euros through 2027.
It was said the CEF funding would be used primarily to develop export logistics on Ukraine's western borders, with the priority given to increasing the throughput capacity of its road and rail checkpoints.
The financing of projects potentially eligible for CEF provides that half the cost be compensated by the applicant country either from its own sources or via international financial organizations, while the remaining 50% is provided under the program.
CEF is a funding instrument for implementing the European transport infrastructure policy aimed at promoting investments in building new or reconstructing the existing transport infrastructure in Europe.
The Trans-European Transport Network (TEN-T) policy envisions the construction of a basic network structured around nine multimodal corridors by 2030 and the completion of a comprehensive network by 2050 to facilitate access to all parts of Europe.
CEF Transport also promotes innovations in the transport system to improve the utilization of infrastructure, reduce the transport sector's impact on the environment, and enhance energy efficiency and security.