Guarantee and Finance Agreement with the EIB on providing loan worth EUR 55 mln for Beskyd tunnel construction signed

The Guarantee Agreement between Ukraine and the EIB was signed on May 19, 2014, by the Infrastructure Minister Maxym Burbak and Head of Office of European Investment Bank Resident Representation in Ukraine Liliya Chernyavska, the financial agreement - by Director General of Ukrzaliznytsya Borys Ostapyuk and Head of Office of European Investment Bank Resident Representation in Ukraine Liliya Chernyavska.

“Today we have inked an agreement which gives us a chance to continue construction of Beskyd transport link. The agreement will afford Ukrzaliznytsya, pursuant to the financial plan, continue works in upgrading of infrastructure. Building of the Beskyd tunnel is a very significant project as it will facilitate increase of transport capacity, the development of communication with the neighboring countries and transit potential as well. It is the next step which will approach Ukraine to the EU membership,” Maxym Burbak noted.  

The European Investment Bank is financing construction of Beskyd tunnel in Ukraine together with its partner - European Bank for Reconstruction and Development. The loan agreement between Ukrzaliznytsya and EBRD envisages financing in the amount of USD 120 million, with USD 36 million out of this sum to be directed for the construction of Beskyd tunnel. The shortage of the loan funds provided by the EBRD for the construction of the tunnel makes up around USD 80 million, so the EIB agreed to provide an additional loan worth 55 million under the state guarantee.

“This project is one of the utmost importance in cooperation of Ukraine and the European Union in the direction of maintaining quality transport interconnection between Ukraine and neighboring countries: Slovakia, Hungary and Poland, in particular. We hope that construction of the Beskyd tunnel will become an example for the following projects how to upgrade the transport ways in Ukraine,” EIB Vice-President László Baranyay said. He added that by signing this agreement, that is the first EIB loan supporting the railway sector, the European Investment Bank emphasizes the importance of further deepening of the integration between Ukraine and the European Union.

In turn, the Head of EU Delegation to Ukraine Jan Tombinski, who was present during the ceremony, emphasized among the crucial factors that demonstrate unity of Ukraine and the EU appear development of infrastructure. “It is indisputable that infrastructure is an important element of implementation of the Association Agreement and the FTA between Ukraine and the European Union. Infrastructure proves necessary to ensure travel of goods, people and remove barriers between the countries, as also capable to ensure their joint development. The signed agreement illustrates the concrete assistance the European Union can suggest to Ukraine,” Jan Tombinski stressed.