The State Rail Transport Administration, also known as Ukrzaliznytsia, and Hyundai Corporation (South Korea) have signed a contract for the supply of 10 high-speed trains that will be used to transport Euro 2012 guests.
As an Interfax-Ukraine correspondent reported, Viktor Ostapchuk, the head of state-run Pivdenna (Southern) railways, which is subordinate to Ukrzaliznytsia, signed the contract on behalf of Ukraine, and Hyundai Chairman and CEO Chung Mong-Koo signed on behalf of South Korea.
The overall value of the contract is about $307 million, according to a press release from the newly created Infrastructure Ministry in Ukraine (the former Transport and Communications Ministry). The financing of 85% of the purchase price of the high-speed trains will be covered with a $261 million loan from The Export-Import Bank of Korea (South Korea), which will be provided for 10 years against state guarantees.
Under the contract, six out the 10 trains will be supplied to Ukraine before Euro 2012 starts, and four more after the football championship.
As reported, the Cabinet of Ministers permitted Pivdenna railways to raise $261 million in loans in 2010 against state guarantees to buy high-speed trains.
