Business news from Ukraine

SIX ROAD SECTIONS IN UKRAINE SELECTED FOR TRANSFER TO CONCESSION

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.

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.

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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.

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STATE-RUN UKRAVTODOR STARTS REPAIRS OF IZMAIL-KILIYA-VILKOVE ROAD

The State Automobile Roads Agency of Ukraine (Ukravtodor) has begun repair work on the ten-kilometer section of the T-16-07 Izmail-Kiliya-Vilkove national road.
Ukravtodor said in its Telegram channel that work is already underway to break up the old road surface and equip the base with crushed stone-sand mixture.
The contractor for the repair work on the site is Rostdorstroy LLC.
Ukravtodor said that under the Big Construction program it is planned to restore 194 km of roads in Odesa region in 2020.
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.

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ARCELORMITTAL PASSES 50 MLN TONNES OF SMELTER SLAG FOR ROAD CONSTRUCTION IN UKRAINE

PJSC ArcelorMittal Kryvyi Rih (Dnipropetrovsk region) has passed 50 million tonnes of smelter slag to state-run enterprise New Technologies of Road Construction.
The metallurgical complex said on Thursday that after processing into slag crushed stone and sand smelter slag will be used for road construction and repairs under the Big Construction state program.
“We want Ukravtodor and local authorities to use more actively smelter slag provided by ArcelorMittal Kryvyi Rih the characteristics of which fully comply with the national standards of road construction. It can be used in the base layer and as fine and coarse aggregate for concrete and asphalt roads,” the enterprise’s chief engineer, Andriy Babenko, said.
He also noted that active use smelter slag will improve the quality of road surface, as well as resolve the environmental problems related to accumulation and disposal of waste.
“Moreover, this is an economically reasonable solution, as road construction using such a technology will cost the government less than the use of natural materials,” Babenko said.
According to ArcelorMittal Kryvyi Rih, Ukravtodor plans to use around 500,000 cubic meters of smelter slag for road construction in 2020. As of the middle of August, it has used more than 100,000 cubic meters of smelter slag in Kharkiv, Donetsk, Dnipropetrovsk and Zaporizhia regions.

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EBRD WILL ISSUE EUR 50 MLN FOR ROAD RECONSTRUCTION IN DNIPROPETROVSK REGION

The European Bank for Reconstruction and Development (EBRD) will finance the reconstruction of the Dnipro-Mariupol and Dnipro-Kotovka roads in Dnipropetrovsk region, EBRD Senior Adviser for External Affairs Anton Usov said on his Facebook page. “The head of Dnipropetrovsk region, Oleksandr Bondarenko, and the EBRD Deputy Director in Ukraine, Mark Magaletsky, have signed an agreement to begin preparing a project for the reconstruction of roads in the region. The project cost is estimated at EUR 50 million,” he said.Procurement of goods and services for this project will be carried out in strict accordance with the rules of the EBRD after approval by the board of directors of the bank and signing the corresponding agreement.Usov said that work in this direction was launched in October 2019 in the context of the Re-Think investment forum, which was held in Mariupol (Donetsk region).

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