Ukraine will apply to South Korea for a loan to purchase 20 Korean-made electric trains for state railway operator Ukrzaliznytsia through a transparent competitive tender, Deputy Prime Minister for Reconstruction Oleksiy Kuleba announced during his working visit to Seoul.
"Cooperation with Korean partners paves the way for the creation of a modern and sustainable transportation system. It is important for us that the purchase of new electric trains takes place through a transparent and open competition among companies," Kuleba said, according to Interfax.
The tender will be open to Korean manufacturers including Hyundai Rotem, Dawonsys, and Woojin. During his working trip, Kuleba met with passenger rolling stock manufacturers and briefed them on Ukraine's railway development vision and rolling stock modernization needs, the ministry reports.
Korea has already established a framework for preferential financing of up to $2.1 billion for Ukraine covering 2024-2029, the Ministry of Development noted. In August 2023, Ukraine's parliament ratified a framework agreement with South Korea on loans from the Economic Development Cooperation Fund (EDCF) for this period, opening possibilities for Ukrzaliznytsia to acquire 20 Intercity+ class electric trains.
The Cabinet of Ministers approved a draft letter to the Korean government requesting such a loan on 10 September, according to the ministry.
Ukrzaliznytsia announced plans in August to increase daytime high-speed traffic share to 30% within three years and 40% within five years, compared to the current 12-15% average. The purchase of 20 new electric trains, in addition to 10 Hyundai trains bought before Euro 2012, forms a key part of these expansion plans.
However, a Russian strike later put one of the existing 10 Hyundai trains out of service.
