The financial plan of Ukrainian railways for 2015 has projected that financing of capital investment will total Hr 2.055 billion, a mere 7.4 percent of the required sum of capital investment in the current year.
According to an explanatory note to the financial plan, the text of which has been posted on the website of the Infrastructure Ministry of Ukraine, capital investment will be financed at the expense of the following sources: own funds (depreciation, the production development fund) – Hr 367.3 million, credit funds Hr – 1.662 billion, and investors’ funds – Hr 26.1 million.
“The priority of investment activity is updating railway rolling stock (the purchase of new [rolling stock], modernization of the existing fleet) and modernizing and reconstructing tracks, for which financing for a total of Hr 1.045 billion is planned, of which Hr 108.6 million [is required] for the acquisition of rolling stock, Hr 656.1 million for rolling stock modernization, Hr 280.9 million for track modernization and reconstruction, and UAH 59.5 million for rail reconstruction,” reads the document.
In particular, borrowed funds are planned to be used to finance the acquisition of rolling stock in the amount of Hr 108.6 million, including diesel trains and railcars.
Modernization, and modification of fixed assets is to be financed using own and credit funds in the amount of Hr 1.069 billion, including modernization of passenger and cargo locomotives, passenger wagons, other rolling stock for Hr 656.1 million, track modernization – Hr 221.4 million, and modernization of other fixed assets – Hr 192.1 million.
