2. EURORAIL Project
Initiator: Ministry of transport and communications of Ukraine
Lviv Oblast State Administration
Lviv City Council
Cost: 500 mln. EUR
Terms: 2010-2015
Prerequisites:
• Discrepancy of Ukrainian and CIS countries’ railways
(1520) with the EU railway standard UIC (1435)
• Increased demand for fast and qualified
communication between Ukraine (CIS) and Europe
4. Project main statements
Project subject: The construction of 84 km long EU standard rail
track and all required infrastructure between Lviv and Polish-
Ukrainian border (Prezemysl/Mostyska and Krakivets).
Goal: to provide high speed railway connection between Lviv and
Polish-Ukrainian border within III Euro transport corridor.
Mechanism: Concession for construction and further operation of
the rail track and its infrastructure.
Participants: Cabinet of Ministers of Ukraine, Ministry of transport
and communication of Ukraine, Lviv Oblast State Administration,
Lviv City Council, private companiesЛьвівська обласна Рада,
Львівська міська Рада, приватні компанії. Participation of Ministry
of infrastructure of Poland is also needed.
5. Implementation algorithm
1. JSC “Evrokoliya” set up by experienced in this field companies.
2. The Cabinet of Ministers of Ukraine is to issue the Resolution
regarding “Eurorail” Project implementation and assign core
Ministry (Ministry of transport and communication of Ukraine)
to be responsible for its realization.
3. The Concession Agreement is to be signed with the Company-contractor
identified through the Tender.
4. The Concession Agreement is to be prepared and signed by
Ministry of transport and communication of Ukraine, Lviv Oblast
State Administration, Lviv City Council and JSC “Evrokoliya”
and is to contain Project implementation mechanisms.
5. JSC “Evrokoliya” attracts all required financial funds and
contractors for the Project implementation.
6. After the project is implemented it is to be managed and used
by Ministry of transport and communication of Ukraine. The last
is to make payments for the benefit of JSC “Evrokoliya”.
6. Project scheme
JSC
“Eurokoliya
Ministry of transport
“Eurokoliya”
Specifications
Rail track and
infrastructure
operation
Ownership for
the rail track
and the part of
infrastructure
JSC
Plots
ІInformation
Ministry of transport
Lviv Oblast
Administration
Investments
Lviv City Council
Founders
Construction process
Ownership for
the part of
infrastructure
Euro rail track usage payments according to the
Concession Agreement as the investments
return source
7. JSC “Evrokoliya” set up
“Evrokoliya” is to be joint-stock company
JSC “Evrokoliya” founders (companies) are to be able to provide
qualified Project implementation.
Company’s dominant task – is to develop contract and legal
platform for its further activity (including possible relations
coordination between core Ministers of Ukraine and Poland and
between Lviv Oblast Administration and Lviv City Council).
JSC “Evrokoliya” is to hold a research on a Project, provide its
feasibility study and approve the Project with all Participants.
The last stage – Project Business Plan, investments attraction
and Project implementation.
8. Concession Agreement
Main regulations:
Project participant’s collaboration mechanism.
Participant’s obligations (land plots, information, specifications
provision for the Project by its Participants).
Constructed object’s ownership (tracks, terminals, technical
buildings, warehouses etc.).
Relations among Project Participants on the after construction
stage when the rail track and its infrastructure will be operated.
Rail track and its infrastructure usage payments as the
investments return source
9. Implementation phases
Phase I: 2008 - 2009
•Pre-feasibility study
• Memorandum of Understanding with Dutch MOVARES and NEA for pre-feasibility
study, 133,000 EUR attracted from the Dutch government.
•Additional investment required for Phase 1 – 250,000 eur
Phase II: 2009 – 2010
•Pre-feasibility study presentation to all the stakeholders for final decision-making
•The establishment of the International Project Implementation Consortium
•Finalizing Project Finance Structure and Legal Model (PPP)
Phase III: 2010 – 2013
Project Implementation:
•Construction the rail track from Polish/Ukrainian border to Lviv (86 km)
•New rail infrastructure development, including modern passenger and goods
terminal near and in Lviv
10. Project impact assessment
Increase of passenger and cargo flows
Maximum shortening of the travel time
Social and economic development of the region
Ukraine’s integration with
main European cities
