We must continue the reform of Ukrzaliznytsia, - Volodymyr Omelyan
We must continue the reform of Ukrzaliznytsia and expect on the support of the World Bank in this issue. Volodymyr Omelyan, the Minister of Infrastructure stated the above during the meeting with representatives of the World Bank and JSC "Ukrzaliznytsya" which was held on April 4, 2019.
The parties discussed the prospects of Ukrzaliznytsia development, in particular, UZ debt and asset management, prioritization and general financial situation and liberalization of the railroad market.
Volodymyr Omelyan noted on the decisive action to reform the industry: "We cannot wait until the new draft law on railway transport will be adopted by the parliament. Already this year we are launching private locomotives on the railway. We already have good progress and experience on the regional railway in Lviv and want to extend this experience overall Ukraine".
The Minister of Infrastructure also noted that the improvement of the tariff policy is also important: "We would like to have a systematic approach to the tariff policy. We still have cross- subsidization of passenger and freight transportation. In order to conduct a tariff policy and have good service at the same time, we must have the support of the government. At the same time, we intensify our dialogue with the municipal authorities in order to maintain the suburban traffic. Such transportation should be co-financing by local authorities ", - said Volodymyr Omelyan.
The head of the Ministry informed representatives of the World Bank about the significant interest from potential investors to the pilot projects on the concession of railway stations: "First of all, it concerns the railway station in Kyiv, Lviv and Mykolaiv, where the municipal authorities and business are ready for the concession. I also think that this is a good solution for Ukrzaliznytsia. Our goal is turn stations into comfortable hubs with public space and all the necessary amenities. The development of railway stations in terms of public-private partnership is what the Ministry’s team is already working on in cooperation with foreign experts and the Reform Support Team. I am grateful to donors for their support in attracting technical assistance for the implementation of these projects ".
Volodymyr Omelyan also asked the World Bank to analyze the procurement procedure of Ukrzaliznytsia to ensure their transparency and competition.
In turn, representatives of the World Bank reported that Bank experts are working on a strategy for reforming of Ukrzaliznytsia, focusing on the improvement of operational efficiency, quality of services, minimizing the risks of market liberalization.