Ukraine is planning to implement the first pilot public-private partnership (PPP) projects in the road industry, transferring six highways to concession.
A source in the industry told Interfax-Ukraine that the first sections and routes for PPP implementation will be offered:
– a section of the M-03 road from Boryspil to Poltava;
– a section of the M-06 road from Kyiv to Rivne;
– the route from Dnipro to Kryvy Rih and Mykolaiv (М-04, Н-11);
– the route Yahodyn – Kovel – Lutsk (М-07, М-19);
– the route Kharkiv – Dnipro – Zaporizhia (M-29, M-04, M-18);
– a section of the M-14 road from Kherson to Mykolaiv.
At the same time, a private investor will undertake the obligation to update and develop the existing road, and funds will be allocated from the Road Fund to support the investor, provided that he observes all obligations on the quality of road maintenance.
Instead of collection of fares, it is planned that the investor will earn by developing roadside infrastructure: gas stations, catering establishments, advertising space, etc.
According to Minister of Infrastructure of Ukraine Vladyslav Krykliy, the implementation of the entire program will allow in the medium term to attract more than $9 billion of private investment in the restoration and maintenance of more than 4,500 kilometers of national highways.
The first public-private partnership program in the road sector of Ukraine is planned to be presented in Kyiv on October 29, 2020.
