Business news from Ukraine


The Ministry of Infrastructure of Ukraine, the Ministry of Digital Transformation, the State Automobile Roads Agency of Ukraine (Ukravtodor), the National Commission for the State Regulation of Communications and Informatization (NCCIR) and Ukrainian Internet associations signed a memorandum of cooperation in the development of broadband Internet access on roads.
As reported on the website of the Ministry of Infrastructure on Friday, with the memorandum, all of its parties will cooperate in the implementation of smart transport systems and their arrangement on public roads of national importance.
In particular, Ukravtodor, when conducting procurement for the overhaul of these roads, will include provisions for the development of broadband Internet access in the customer’s requirements, as well as the infrastructure necessary for the cable telecommunication lines.
“We want that during the overhaul of these roads, one of the requirements for the customer is the development of the required infrastructure for the cable telecommunication lines, so that there is broadband access to the Internet. This will allow the introduction of smart transport systems, which are very important to increase transport safety and prevent possible accidents, traffic monitoring and efficient management of traffic flows,” the press service of the Ministry of Infrastructure said, citing minister Vladyslav Krykliy.

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The Cabinet of Ministers of Ukraine has supported amendments to the Government Program for Improving Road Safety in Ukraine for the period until 2020, thanks to which 25 Weigh-in-Motion (WiM) scale systems will be installed and 50 portable truck weighing scales will be upgraded. According to the press service of the Infrastructure Ministry of Ukraine with reference to Minister Vladyslav Krykliy, the Cabinet of Ministers adopted the corresponding decision on Wednesday.
“Due to violation of the rules for the passage of oversized and heavy vehicles, roads are being destroyed. The government is spending on their repairs and the number of accidents on these roads is increasing. Today, out of the 78 portable truck weighing scales purchased in 2017, 50 require replacement of weighing elements. I am glad that the government supported the changes to the government program for improving road safety. Now, for effective overall weight control, 50 portable truck weighing scales will be updated, and 25 WiM complexes will be installed,” the press service said, citing the minister.
Accordingly, with the changes, the cost of installing modern WiM systems was increased by UAH 380.7 million, and the cost of the purchase of 50 portable truck weighing scales was increased by UAH 15 million.
In addition, it is envisaged to increase the number of tablets for employees of the National Police by 200 units (up to 1,200), to purchase 30 mobile diagnostic stations for checking the technical condition of vehicles and 30 road laboratories for checking the condition of the road network. It is also planned to purchase another 10 rescue vehicles for the State Emergency Service in order to reduce the time of arrival of the service to the accident site to 7-10 minutes.

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JSC Ukreximbank and the State Agency of Automobile Roads of Ukraine (Ukravtodor) with the participation of President of Ukraine Volodymyr Zelensky have signed an agreement to provide the first tranche for updating roads in Ukraine in the amount of UAH 5.782 billion from the amount of financing, which will total UAH 19.3 billion.
“Despite the quarantine measures in our country, the most important thing is that the state works and, together with the banking sector and construction companies, builds kilometers of roads and “sews” our country! As I said, roads, bridges are a priority,” Zelensky said after the signing of the agreement.
He emphasized that the Big Construction program is the image of Ukraine as a country with modern and high-quality roads on which you can travel. The president also noted that the program will contribute to the creation of new jobs.
The president’s press service notes that the attraction of funds from Ukreximbank under state guarantees by Ukravtodor became possible due to the adoption of laws on amendments to the budget that Zelensky signed on February 4, 2020, and thanks to the decision of the National Bank to lower the refinancing rate. The loan interest rate will be 10.5% per annum.
“We, as a state bank, support the Big Construction project. With the signing of the agreement, Ukravtodor will receive the first tranche in the amount of UAH 5.782 billion at a rate of 10.5% per annum, which is 2% lower than the Cabinet of Ministers foresaw,” chairman of the board of Ukreximbank Yevhen Metsger said.
He said that Ukreximbank is ready to become a financial partner of the Big Construction project and lend its shoulder to all companies, in particular contractors, that will be involved in the construction of the facilities under this program.

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Austria’s Holso GmbH has proposed to build roads from clay in Zakarpattia and the first experimental kilometer of the clay road will be built between the settlements of Danylove and Oleksandrivka (Khust district) in October 2019.
As reported on the website of the Zakarpattia Regional Administration, such an agreement was reached by the head of the Regional Administration Ihor Bondarenko and representatives of Holso GmbH during the meeting.
According to the representatives of the Austrian company, the warranty service life of clay roads is 10 years. Its cost is five to six times less than asphalt roads. Currently, 50 countries are already using this technology.
“I see no obstacles not to use this unique technology in Zakarpattia. If it proves effective, it will speed up the construction of roads in the region several times. Our region will be an example for the entire country in this issue. I think this idea is very useful, because it combines a reasonable price and high quality. I can assure you: you will have the full support of the regional administration in the implementation of this project,” the press service said, citing Bondarenko.
In addition, Mykhailo Popovich, the head of the Automobile Road Service in Zakarpattia region, who was present at the meeting, said that the technology had already been tested at an expert institute. According to him, it is possible to build roads in this way in any weather, and the clay road can also be used as a basis for asphalt concrete.
“In our region, the use of this technology can significantly accelerate the construction of roads, especially rural and forest roads,” he added.

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The European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) are ready to provide a targeted loan in the amount of EUR 900 million to Ukraine to develop the road sector, acting Head of the State Automobile Roads Agency of Ukraine (Ukravtodor) Slawomir Nowak has said. “I have already held negotiations with the EBRD and the EIB. A new credit line will be opened for Ukraine in the amount of EUR 900 million,” he said.

According to Nowak, the negotiations were very difficult, but trust in the state and its managers ultimately allowed for a positive solution.

“Within the framework of this new credit line, we will also offer to finance the Weight-in-Motion system at the next stage,” the acting chief of Ukravtodor said.

Nowak also said that he recommended that Minister of Infrastructure Vladyslav Krykliy eararks funds from the Road Fund allocated for road safety to the installation of the Weight-in-Motion (WiM) system.

As reported, Ukravtodor launched in test mode the first two WiM points on the Kyiv-Chop highway.

On September 11, the Rada adopted at second reading a bill allowing automatic recording of violations during weight monitoring on roads.

Weight-in-Motion (WiM) systems will fulfill a function of pre-selection for inspectors of the State Service of Ukraine for Transport Safety until a law allowing automatic weight and weight control on roads is passed.

Ukravtodor previously planned in October to launch the first six WiM points at the entrances to Kyiv. In general, it is planned to install up to 100 WiM points.

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The State Automobile Roads Agency of Ukraine, also known as Ukravtodor, plans to introduce the toll system for large trucks for using Ukrainian roads.
“It was my initiative to implement intelligent transport systems in Ukraine. In addition to Weight-in-Motion (WiM), this includes recording speeding and traffic analysis systems using cameras. The fourth part of the global intellectual transport system of Ukraine is tolling, that is, collecting payments from heavy vehicles for traveling on Ukrainian roads,” acting Head of Ukravtodor Slawomir Nowak said in an interview with Interfax-Ukraine.
He believes that the introduction of the toll will be a serious legislative change for Ukraine, which will significantly improve the condition of roads in the country.
“We need to pass a law that will regulate this toll. We urgently need to introduce an additional source for the Road Fund. There is a European principle: trucks, especially those that earn on transportation, must pay more for traveling on roads,” the acting head of the agency said.
According to Nowak, the volumes of road destruction due to overloaded transport are huge.
“The problem with overloaded tracks in Ukraine is very, very big,” he said.

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