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Volgograd Receives over RUB3bn as Full Financing for Its Tram Network Modernisation from VEB.RF

7 october 2024 года
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Volgograd has received 62 new trams, including 50 single-unit Lionets, with financial support from VEB.RF. Twenty-four of them are already in operation. The soft loan was provided by VEB.RF at a fixed interest rate of 5.65 per cent for a term of 20 years. VEB.RF fulfilled all its obligations to finance the project.

VEB.RF Deputy Chairman Oleg Govorun said: “VEB.RF’s objective is to do what is necessary to achieve the goals of promoting urban electric transport and improving quality of life in cities while making sure that investment is returnable, including drawdowns from the National Wealth Fund. The successful implementation of the Volgograd project was made possible by the combined efforts of all participants, including the personal involvement of the head of the local government and his team, who have supported the project at all stages. We fully understand our responsibility to city dwellers, who are keen for the project to be completed.”

The project is carried out under a concession agreement for a total of about 12 billion roubles. The city has already started the large-scale modernisation of its rail-based electric transport system.

The project for the ground-level high-speed tramline of Volgograd involves upgrading 15 kilometres of existing tramway tracks; building five kilometres of new tramway tracks; rehabilitating two subterranean stations, 11 traction substations and one tram depot; purchasing 50 Lionet single-unit trams and 12 Nevsky three-unit trams. The Volgograd tramline with ground-level and underground sections is the only mixed tram system in Russia. Made by PC Transport Systems, the Lionet 34-seater tram is capable of accommodating up to 155 people. Its low-floor design makes access to trams easy for passengers in wheelchairs or with prams. The tram is also equipped with USB ports and an HVAC system.

Volgograd is on the list of cities approved by the Russian Government for the modernisation of urban electric transport with support from VEB.RF. Russian Deputy Prime Minister Dmitry Grigorenko was appointed to oversee the programme. As instructed by the government, VEB.RF acts as the programme’s financier, project office and coordinator. The total budget of the programme is 252 billion roubles. Based on a comprehensive approach, the programme includes renewing rolling stock and infrastructure, implementing a digital platform, landscaping urban areas, providing new structures and light fittings for public transport stops, and more. This makes it possible to considerably raise standards of transport service quality.
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