Business news from Ukraine

STATE BUDGET FOR 2021 PROVIDES FOR UAH 81.3 BLN FOR ROADS

The national budget of Ukraine for 2021 foresees UAH 81.3 billion for the development of road infrastructure, according to the presentation of the document prepared by the Ministry of Finance and posted on the website of the Cabinet of Ministers.
Out of the indicated UAH 81.3 billion for the development of road infrastructure, UAH 66.4 billion will be financed from the Road Fund. In particular, UAH 31 billion will be used for the development and maintenance of highways of state importance, UAH 18.1 billion for the construction, reconstruction and maintenance of local roads (subvention).
Another UAH 14.8 billion are foreseen for the fulfillment of debt obligations on borrowings under state guarantees for the development of the road network. Also, UAH 2.5 billion in the 2021 state budget has been allocated to ensure road safety.
The development of the road network is also expected at the expense of funds for the implementation of state investment projects in the amount of UAH 250 million, funds of international financial organizations in the amount of UAH 4.6 billion and through borrowing under state guarantees in the amount of UAH 10 billion.
At the same time, the resources of local budgets for the development of municipal roads and streets of united territorial communities (due to excise tax on fuel) is estimated at UAH 8.05 billion.

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BIG CONSTRUCTION ROADS IN UKRAINE TO ALWAYS BE FREE

Ukravtodor (the State Automobile Roads Agency of Ukraine) denies information that a number of roads, renovated and built as part of the Big Construction, will soon become toll roads, the ministry’s press service reports on Facebook.
“On December 23, 2020, at a government meeting, a resolution was approved that sets the maximum amount of payment for one-time travel on roads that are built under the concession. There is not a single road built at the expense of private investors in Ukraine yet. That is, none of the Big Construction roads can become toll this year. The only purpose of the resolution is to create conditions for starting a dialogue with investors on the implementation of concession projects in Ukraine,” Ukravtodor reported.
The press service of the department also said that the construction of concession toll roads necessarily involves a free alternative.
Ukravtodor reported that in November, together with the IFC and the Ministry of Infrastructure, they presented a public-private partnership program in the road industry.
“At the first stage, it is planned to transfer to investors six pilot sections of roads with a total length of 1,400 kilometers. On these sections, the investors have no right to charge a toll, but they will earn on roadside infrastructure and availability payments from the state road fund,” the message says.

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EUR 100 MLN LOAN FROM EIB TO BE USED TO REPAIR THREE ROADS IN LUHANSK REGION

A loan from the European Investment Bank (EIB) in the amount of EUR 100 million will be directed to overhaul of 183 km of roads in Luhansk region, the State Agency for Highways of Ukraine (Ukravtodor) reported.
Funds are provided for capital and current average repairs of the sections:
– route N-26 Chuhuiv – Milove: it covers more than a hundred kilometers, which are planned to be repaired for borrowed funds, because this road connects Luhansk and Kharkiv regions;
– the road P-66 checkpoint “Demyno-Oleksandrivka” – Svatove – Lysychansk – Luhansk, which starts from the border with Russia, a 35 km section has already been repaired, the road is planned to be fully restored;
– road T-13-02 checkpoint “Taniushivka” – Starobilsk – Bakhmut, where work will begin at once on two sections, with a total length of 42 km.
“In 2020, Ukravtodor completed a record amount of road work in Luhansk region: almost 200 km were restored at the beginning of December, and work continues for another 100 km. For comparison, over the past 10 years, only 130 km of roads were renewed. This is one of the most low indicators in the country,” said head of Ukravtodor Oleksandr Kubrakov.
According to him, in 2021, thanks to the funds of international partners, Ukravtodor will restore the transport “triangle” along the Severodonetsk-Starobilsk-Svatove route with access to Troyitske in the north of the region, and in general, thanks to the Big Construction program, a modern road network in the region.
Earlier, the World Bank for Reconstruction and Development has already provided co-financing for this project in the amount of $65 million.

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3,900 KM OF ROADS IN UKRAINE AT FINAL STAGE OF RECONSTRUCTION

There are currently 3,900 km of roads at the final stage of reconstruction in Ukraine (the last sphere of asphalt concrete is being commissioned, completed or is being completed), Head of the State Automobile Roads Agency of Ukraine (Ukravtodor) Oleksandr Kubrakov said in during the presentation of the results of his team’s work during the year on Tuesday.
Among the leaders in road commissioning, he indicated Kharkiv (261.6 km), Zakarpattia (248.3 km), Zaporizhia (220.2 km), Sumy (197.2 km), Khmelnytska (194.3 km), Cherkasy ( 162.9 km) and Lviv (154.9 km) regions.
In addition, Kubrakov said that out of 100 artificial structures that Ukravtodor planned to renovate in 2020, 78 have already been reconstructed. In particular, this is the reconstruction of two bridges on the road R-62 Kryvorivnia – Ust-Putyla – Stary Kuty – Vyzhnytsia – Storozhynets – Chernivtsi; overhaul of the overpass on the road M-12 Stryi – Ternopil – Kropyvnytsky – Znamianka; reconstruction of the bridge on the road N-08 Boryspil – Dnipro – Mariupol.
“Yesterday, a bridge was put into operation in the village of Bushtyno [Zakarpattia region]. It began to be built in 2006, construction was stopped in 2009. The temporary bridge was already falling apart there. It was a question that the road of national importance would simply remain without connection,” he said.
In addition, the construction of a bridge across the Prut River in the village of Marshyntsi on the T-26-06 road (concreting of the roadway, active work at the facility began a couple of months ago), a bridge across the Lukva River in the village of Bodnariv on H-10 road, crossing between the villages of Stary Martyniv and Sivka-Voinylivska on T-09-10 road are nearing completion.
In 2020, Ukravtodor plans to repair 4,200 km of national roads.

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STATE ROADS AGENCY OF UKRAINE INTENDS TO REPAIR 6,800 KM OF ROADS IN 2021

The State Roads Agency of Ukraine (Ukravtodor) intends to repair 6,800 km of roads in 2021, said head of the agency Oleksandr Kubrakov.
“In 2020, the road sector has become a state priority. The program for 2020 envisages 4,000 km of roads. In 2021, we plan to repair and build more than 6,000 km of roads,” he said during an online presentation of the first public-private partnership program on Thursday.

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RENOVATION OF ROADS LEADING TO CHECKPOINTS IS ONE OF UKRAVTODOR’S PRIORITIES

The State Roads Agency of Ukraine (Ukravtodor) considers one of its priorities for 2021 to update roads leading to checkpoints on the border of Ukraine, the agency’s Telegram channel reported on Thursday.
“This will contribute to the growth of exports, transit and tourism,” the press service of the agency quoted chairman of Ukravtodor Oleksandr Kubrakov as saying.
He also noted that this year the road M-07 Kyiv – Kovel – Yahodyn (to Lublin) is being renewed within the framework of the national program “Big Construction”. In particular, the reconstruction and extension of the section of the roadway to the first category have already been carried out. The plans are for M-07 (the entire route after Kovel and up to the border) to become the first category highway.
Extension to the first category was also carried out on the N-22 Kyiv – Rivne highway.
In total, 156 km of national roads are being renovated in Volyn this year, of which the top layer has already been laid on almost 100 km.

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