EBRD lends 9.6 mln euros to Ukrainian grain trader to expand rail terminal on Polish order

MOSCOW. July 14 (Interfax) - The European Bank for Reconstruction and Development (EBRD) has granted a loan of 9.6 million euros to Ukrainian grain exporters and fertilizer and farm machinery distributor Agrosem LLC to expand a rail terminal near the Polish border and build a grain transhipment complex and container yards facility to will increase exports of grain from the country, the bank said in a press release.

The project will also get financing in the form of an investment grant of 1.5 million euro from the United States provided through the EBRD's Ukraine crisis response fund, and an equity contribution of 2.6 million euros from the company, the bank said.

"This project will improve Ukraine's transport connectivity with the European Union to the country's west by addressing the shortage of modern transhipment capacity at the Ukrainian-Polish border, a key infrastructure bottleneck currently constraining grain exports," the EBRD said.

The investment will facilitate the development of alternative overland routes for exporting Ukrainian grain.

The first stage of the project, which was completed last November, includes an automated facility for direct grain transhipment between broad- and narrow-gauge railcars.

The second stage will involve the construction of an elevator complex with storage capacity for 22,000 tonnes and expansion of the rail track infrastructure. The grain complex will have throughput capacity of over 400,000 tonnes per year and should be completed by the end of 2024. A container transhipment facility will also be built on the existing rail terminal in the same timeframe.

Agrosem's logistics terminal is located near the Mostiska-II train station in Ukraine's Lvov region and handles various types of freight, including mineral fertilizers, transhipping 10,000-30,000 tonnes per month. The company also has grain storage facilities.