Business news from Ukraine

UKRAVTODOR SAVES UAH 11.8 BLN IN 2020 THANKS TO CHECKS

The State Automobile Roads Agency of Ukraine (Ukravtodor) saved about UAH 11.8 billion of budget funds due to the examination of repair projects, Head of Ukravtodor Oleksandr Kubrakov said during the “Network: Forum of Road Industry” in Kyiv on Wednesday.
“Due to the examination, the decrease in the estimated cost of road repair projects amounted to an average of 7% or 8%. In absolute terms, it is almost UAH 12 billion,” he said.
According to Kubrakov, in 2020, for the first time in the history of road construction in Ukraine, 100% of repair facilities, including current average repairs, undergo an independent examination. Previously, no more than 25% of all facilities were examined.
He also said that the repairs have been finished at the moment on 3,900 kilometers of national roads, and 85 artificial structures have been repaired. At the same time, the average cost of one kilometer of the road in 2020 is UAH 20.6 million, which is UAH 4.5 million cheaper year-over-year.
According to Kubrakov, in 2020, the focus is on the quality of roads, not quantity. Therefore, some 90% of the projects in 2020 were equipped with a road base laying that ensures the durability of the road surface.
In addition, in 2020, the volumes of lighting devices (619 kilometers versus 78.8 kilometers in 2019), barrier fencing (515,000 linear meters against 263,000 linear meters in 2019), as well as sidewalks (206,000 linear meters against 43,500 linear meters in 2019).
In addition, the savings in 2020 auctions rose to 7.8% (the average savings over the past five years is 6.2%).

UKRAVTODOR PLANS TO REPAIR 150 BRIDGES IN 2021

The State Automobile Roads Agency of Ukraine (Ukravtodor) in 2021 plans to repair 150 bridges and launch 60 Weight-in-Motion (WiM) complexes.
“As we have already said, next year we plan [to repair] 6,800 km roads, 150 artificial structures on national roads, 60 WiM sites, and involve independent technical supervision for 2,500 km. We see the pace of this year and understand that this is possible, provided that we start on time and we can finance it on time,” Head of Ukravtodor Oleksandr Kubrakov said at a press conference in Kyiv on Tuesday.
He also said that in 2021, Ukravtodor plans to begin construction of the bypass around Kyiv with an estimated cost of UAH 85 billion and the construction of the Kremenchuk Bridge with an estimated cost of UAH 12.5 billion (a tender is being held for it now).

,

SINOHYDRO FROM CHINA TO SUE STATE-RUN UKRAVTODOR FOR TERMINATION OF CONTRACT IN UKRAINE

The Chinese company Sinohydro Corporation Limited intends to file a claim in international arbitration for the termination of the contract for the reconstruction of the bypass road around Zhytomyr by the State Agency of Automobile Roads of Ukraine (Ukravtodor).
According to the company’s statement, Sinohydro considers it unfair that Ukravtodor, having failed to effectively fulfill its contractual obligations, unilaterally decided to terminate the contract, while the Dispute Settlement Council (created under the contract together with Ukravtodor in May 2020) is still considering disputes surrounding this contract and has already ruled on some of them, allowing Sinohydro to renew the contract.
Sinohydro says the untimely transfer of a land plot for public use by Ukravtodor, the introduction of a number of design changes not provided for in the contract, failure to fulfill payment obligations, as well as force majeure in the form of the COVID-19 epidemic and many other factors influenced the project schedule and led to a violation of the terms of work.
“Since June 2020, facing an unfavorable situation caused by the fact that Ukravtodor did not complete the interim payment for construction work on time, and the continuing impact of the COVID-19 epidemic, Sinohydro has advanced over EUR 5 million to meet its contractual obligations and reduce the delay,” the company said.
It is emphasized that in comparison with other sections of roads under construction in Ukraine at the same time, this project is being implemented at a rather fast pace and is already nearing completion.
“Under the circumstances, the Dispute Settlement Council decided on the first contract dispute initiated by Sinohydro in September 2020. It agreed to extend the contractor’s deadline for construction work by 87 days. However, when the Council began considering at least four disputes over damages to Sinohydro, Ukravtodor unexpectedly announced the termination of the contract,” the report says.

, , ,

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.

, ,

UKRAVTODOR RESTARTS REPAIR OF ROAD FROM IZMAIL TO VYLKOVE

The State Road Agency of Ukraine (Ukravtodor) has begun repair work on the sections of the route from Izmail to Vylkove with a length of 34 km (Odesa region).
As reported on the Ukravtodor’s Facebook page, work is currently being carried out on a ten-kilometer section from the city of Kiliya to the border of Izmail district. Arrangement of the base with crushed stone-sand mixture has already begun here.
The contractor is Rostdorstroy LLC.
It is noted that work is also carried out to develop designed-estimated documentation for the renewal of a 24 km section from Kiliya to Vylkove. The work is scheduled to begin early in the new year.
According to the agency, drivers will be able to use the updated route next year.
In total, in Odesa region, Ukravtodor plans to renew 194 km of roads in 2020.

, ,

STATE-RUN UKRAVTODOR STARTS REPAIR WORKS ON ROAD TO OCHAKIV

The State Automobile Roads Agency of Ukraine (Ukravtodor) in 2020 will renew the road T-15-13 Nechayane – Ochakiv (Mykolaiv region) with a length of 36.9 km, Ukravtodor has said in its Telegram channel.
“This is one of the worst roads in the country, which leads to picturesque places on the Black Sea coast. The plan is to launch it by the end of 2020,” the press service said, citing Ukravtodor Head Oleksandr Kubrakov.
Rostdorstroy LLC and OJSC Road Building Enterprise DST No. 4 Brest were identified as the contractors for the repair work.
The agency said that the work began from the north – the exit from the M-14 road Odesa – Melitopol – Novoazovsk. The contractor is currently cutting the worn-out road surface on a 6-kilometer stretch.
In general, in 2020 in Mykolaiv region it is planned to renew 185.5 km of national roads.
In Ukraine, according to the data of Ukravtodor, the Automobile Road Service has completed the upgrade of 2,022 km of roads in the upper layer of the road surface, another 800 km have been completed in the leveling layer. The leaders are Zakarpattia (223.5 km), Kharkiv (221.2 km), Zaporizhia (168.8 km), Sumy (149.9 km), Luhansk (133 km) and Lviv (130.1 km) regions.
RDS Group is included in the top three road construction companies of Ukraine. It includes Kyivshliakhbud” and Rostdorstroy. The core business is construction, reconstruction and maintenance of roads and bridges, construction of airfield complexes.
The ultimate beneficial owners of RDS Group are Ukrainian citizens Yuriy Shumakher and Yevhen Konovalov.

, , , , , , , ,