EURORAIL Project Organizational model. EURORAIL Project Initiator: Ministry of transport and communications of Ukraine Lviv Oblast State Administration.

“EURORAIL” ProjectOrganizational model

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

EURORAIL Project

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.

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”.

Project schemeJSC

“Eurokoliya

Ministry of transport

Rail track and infrastructure

opera

tion

Ow

ners

hip

for

the r

ail

track

and t

he p

art

of

infr

ast

ruct

ure

JSC “Eurokoliya”

Plo

ts

Speci

fica

tions

ІInfo

rmati

on

Ministry of transportLviv Oblast

Administration

Investm

ents

Lviv City Council

Founders

Const

ruct

ion p

roce

ss

Eu

ro r

ail

track

usa

ge p

aym

ents

acc

ord

ing t

o t

he

Conce

ssio

n A

gre

em

ent

as

the in

vest

ments

re

turn

sourc

eOw

ners

hip

for

the p

art

of

infr

ast

ruct

ure

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.

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

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 – 2013Project 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

Project impact assessment

Increase of passenger and cargo flowsMaximum shortening of the travel time

Social and economic development of the regionUkraine’s integration with main European cities

Leonid Bogdanov, CEO [email protected] Stetskiv, CFO [email protected]

Kyiv, Ukraine 011339 Lesi Ukrainki Blvd, Tel.: +38 044 585 10 80Fax: +38 044 585 10 79www.unidevelop.com