Business news from Ukraine


30 October , 2020  

Six sections of Ukrainian roads with a total length of 1,500 km have been selected for potential public-private partnership projects under this program at the first stage.
The relevant program was presented by Minister of Infrastructure Vladyslav Krykliy, head of the State Agency for Automobile Roads of Ukraine (Ukravtodor) Oleksandr Kubrakov, with the participation of Deputy Head of the President’s Office Kyrylo Tymoshenko, Regional Country Director of the World Bank in Eastern Europe (Belarus, Moldova and Ukraine) Arup Banerji, Senior Investment Officer at the International Finance Corporation Oleh Kudashov, and head of the SPILNO PPP Project Management Office Taras Boichuk.
According to the head of Ukravtodor, in particular, among the specified roads are Kharkiv – Dnipro – Zaporizhia road (M-29, M-04, M-18) – repairs and overhauls, the estimated volume of initial investments is $370 million; Boryspil – Poltava road (M-03) – repairs, initial investment is $180 million; Kherson – Mykolaiv road (M-14) – reconstruction, overhaul, repairs and the construction of a new bypass of the settlement, the volume of initial investments is $310 million; Kyiv – Zhytomyr – Rivne road (М-06) – overhaul and repairs, initial investment is $370 million; Yahodyn – Kovel – Lutsk road (M-07, M-19) – reconstruction, repairs and overhaul, initial investment is $240 million; Dnipro – Kryvy Rih – Mykolaiv road (M-04, H11) – reconstruction, overhaul and construction of a new bypass of the settlement, initial investment is $290 million.
Krykliy, in turn, said that the model proposed by the first PPP program in the road industry would attract private investors to the Ukrainian road market. According to him, in the medium term it will be possible to attract more than $9 billion of private investments for the restoration and maintenance of over 4,500 km of national roads.
He added that international consultants hired by the World Bank Group have already completed a preliminary feasibility study for the six pilot road sections selected for the first stage of the project.
All the projects envisage further maintenance of the road by the investor for 20-25 years.
According to Krykliy, the ministry intends to announce the tender in 2021.
“But for this we must adopt all the necessary laws,” he added.