Ukraine road development: funding secured

Funding has been secured to help pay for major improvements to Ukraine’s road network. The 1166 European Bank for Reconstruction and Development (EBRD) will help to support major new road infrastructure investments in Ukraine. Key road projects being prioritised include the Kyiv-Odessa road upgrade and the construction of the new Lviv bypass.

The EBRD and the Ukraine Government intend to deepen their cooperation in the development of the country’s road infrastructure. More and better roads are critical for the country’s further domestic and regional integration.

In a Memorandum of Understanding signed by Ukraine’s prime minister Oleksiy Honcharuk and EBRD President Suma Chakrabarti in London, the Bank expressed its interest in considering projects to finance. These include the rehabilitation of the M05 Kyiv-Odessa road in Cherkasy, Kirovograd, Mykolaiv and Odessa regions as well as the construction of a northern section of the bypass around the city of Lviv.

The projects are expected to be implemented by 2780 Ukravtodor, the state roads agency. As part of the engagement the EBRD would also support the reinforcement of corporate governance and anti-corruption practices at the agency, the reform of the road sector in Ukraine and the implementation of measures to enhance road safety.

The allocation of EBRD financing is subject to the successful finalisation of the full project-review process, including feasibility and environmental studies, and final approval by the Bank’s board of directors.

Ukraine’s location is crucial for transport between east and west as well as north and south. The ports of the Odessa region are among the busiest trading areas in the Black Sea basin, for imports and exports alike. Meanwhile, Lviv, near the country’s borders with Hungary and Poland, is particularly well placed to benefit from the Deep and Comprehensive Free Trade Agreement between Ukraine and the 1116 European Union.

The EBRD is the largest international financial investor in Ukraine. Since the start of its operations in the country in 1993, the Bank has made a cumulative commitment of more than €14.5 billion through 450 projects in Ukraine.