Business news from Ukraine

ROAD BETWEEN LVIV AND RIVNE TO BE EXPANDED

The State Agency of Automobile Roads of Ukraine (Ukravtodor) has started designing the reconstruction of highway M-06 on the Lviv-Rivne section, taking into account the expansion from two to four lanes, as well as the construction of detours of settlements, the agency has said. “After the completion of renovation, the saving of travel time from Lviv to Rivne without breaking traffic rules will almost halve to 1.5 hours,” Ukravtodor said.
The agency noted that a significant part of exported cargo is transported to the European Union member countries by this road, and therefore its reconstruction, in the opinion of Ukravtodor, will be an impetus for the economic development of the region, will help facilitate investment and create new jobs.
In addition, the new quality of the road will improve the level of road safety and the environmental situation in cities.

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GERMAN KFW COULD PROVIDE EUR 150 MLN FOR ROAD REPAIR IN UKRAINE AND DREDGING WORKS AT ODESA SEAPORT

Germany’s state-run development bank (KfW) could provide EUR 60 million to Ukraine for the completion of construction of a breakwater and dredging works at the Odesa seaport and EUR 90 million for overhaul of H08 Zaporizhia-Mariupol highway and restoration of H32 Pokrovsk-Bakhmut-Mykhailivka road.
“Negotiations with KfW on a loan: EUR 60 million to complete the construction of a breakwater in the port of Odesa and EUR 90 million to overhaul H08 Zaporizhia-Mariupol roads,” Deputy Infrastructure Minister of Ukraine for European integration Viktor Dovhan wrote on his Facebook page.
At the same time, according to a posting on the website of the Infrastructure Ministry, Minister Volodymyr Omelyan confirmed Ukraine’s interest in borrowing from the Federal Republic of Germany in the amount of EUR 150 million (the KfW loan) provided for the restoration of transport infrastructure in the eastern regions of Ukraine. In particular, the Infrastructure Ministry plans to implement the following projects: the construction of a breakwater and the implementation of works to deepen the water area of the port of Odesa; repair works at the national road N08 Boryspil-Dnipro-Zaporizhia (through Kremenchuk)-Mariupol on the Zaporizhia-Mariupol road section and the restoration and improvement of the transport and operational condition of the H32 Pokrovsk-Bakhmut-Mykhailivka state-sustained highway.
According to the Infrastructure Ministry, Germany also expressed interest in participating in the modernization of the electric locomotives of JSC Ukrzaliznytsia and in electrifying the railways, in particular, in the south of Ukraine, near the ports.
In addition, as a result of negotiations with Germany, Ukraine will receive an additional 20,000 bilateral permits for road haulage, which will be valid until the end of January 2019.
In addition, the parties agreed to consider the possibility of increasing the quota of permits for 2019.

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POLAND AND UKRAINE AGREE ON 160,000 LICENSES FOR TRANSPORTATION BY ROAD IN 2019

Ukraine, Poland have agreed on the preliminary exchange of 160,000 licenses for transportation by road in 2019, Ukraine’s Infrastructure Ministry has reported after a meeting of the Ukrainian-Polish mixed commission for international road haulage held on October 10 and October 11.
“The sides will hold a regular meeting of the mixed commission in the first half of 2019, where a decision will be made to establish the final quota,” the Infrastructure Ministry said on Friday.
In particular, there will be universal licenses for of the categories Euro-1, Euro-2 and Euro-5 – 10,000 each, Euro-3 – 50,000, Euro-4 – 20,000, and transit categories of Euro-3 – 25,000 and Euro-5 – 35,000.
According to the report, Ukraine also agreed to obtain from Poland an additional 10,000 licenses (8,000 transit and 2,000 universal) for this year, which will increase their number to 216,500.
The Infrastructure Ministry said that Poland again insists on reducing the 2019 quota to 130,000. However, this does not meet the needs of Ukrainian haulers. “Our position in relation to this proposal was unambiguous – we do not agree to any reduction of the quota!” Director of the Strategic Development Department of the road market and road transport of the Infrastructure Ministry Viktor Sasin said on Facebook.
The ministry said that the meeting on the quota increase for 2019 will be held after evaluating the effectiveness of the use of already issued licenses.

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TURKISH COMPANY WINS ROAD BUILDING TENDER

Onur Construction International has won a tender held by the Automobile Road Service in Dnipropetrovsk region to build a section of H-31 Dnipro-Reshetylivka road from the settlement of Loboikivka to the border of Dnipropetrovsk region with a price offer of UAH 427.9 million. According to the ProZorro e-procurement system, the expected cost of the project was UAH 436.5 million.
Along with Onur, Rostdorbud LLC was a bidder in the tender with the price offer of UAH 428 million, and two more companies were not allowed to participate in the tender.
The tender was announced in October 2017, although changes were made to the tender documents several times. The project is to be completed by late 2019.
According to the public register, Onur Construction International LLC is belonged to Onur and Ihsan Cetinceviz.

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EUROPEAN INVESTMENT BANK GIVES EUR 50 MLN LOAN TO HELP UKRAINE’S RAILWAY AND ROAD AUTHORITIES

The European Investment Bank (EIB) has approved a EUR 50 million credit line to help Ukraine’s railway and road authorities, Ukrzaliznytsia and Ukravtodor, eliminate bottlenecks in European transport networks. As the bank announced, its board of directors approved the project on September 19, 2018. It covers projects for small transport infrastructure worth up to EUR 20 million.
Loans are to be used to improve interaction within the framework of the Eastern Neighborhood and provide substantial support for small-scale but locally significant projects. It is also expected that such financing will improve traffic safety.
The EIB document states that the total cost of this framework project is approximately EUR 110 million, but other sources of co-financing are not specified.

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