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May 21, 2014

EIB agrees to fund construction of Beskyd railway tunnel

The European Investment Bank (EIB) has agreed to €55m in funding for the construction of a new 1.8km twin-track Beskyd railway tunnel, which will link Ukraine with the EU.

EIB_Ukraine tunnel

The European Investment Bank (EIB) has agreed to €55m in funding for the construction of a new 1.8km twin-track Beskyd railway tunnel, which will link Ukraine with the EU.

The funding marks the first EIB loan supporting the railway sector in Ukraine. The European Bank for Reconstruction and Development is co-financing the construction of the tunnel with EIB.

EIB vice-president László Baranyay said: "This project is in line with EIB’s announcement to provide €3bn in funding to Ukraine over the next three years, in order to support the country’s development and economy, as well as foster deeper integration with the EU."

EU ambassador Jan Tombinski said: "The Beskyd tunnel construction is one of the main eastern partnership transport projects in Ukraine.

"It is also an excellent example of coordinated efforts between the EU, Ukraine and international financial institutions in transport cooperation."

Expected to replace the existing single-track tunnel, the new tunnel will significantly improve transport capacity and help meet future demand. The tunnel is located in the Carpathian Mountains at Beskyd in south-west Ukraine.

Approximately €2.1bn in loans has been signed by the EIB for Ukraine to date.


Image: EIB vice-president Laszlo Baranyay; Maksym Burbak, minister of infrastructure of Ukraine and Boris Ostapjuk, director general of railways of Ukraine. Photo: courtesy of EIB.

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