Business news from Ukraine

MPS PROPOSE TO EARMARK UAH 15 BLN STATE BUDGET 2021 FOR ROADS

MPS propose to amend the state budget for 2021 and distribute UAH 38.75 billion of additional receipts, including UAH 12 billion for subsidies and UAH 15 billion for the repair of national roads.
Bill No. 6052 was registered by a group of MPs in parliament on Tuesday.
According to an explanatory note to the bill posted on the parliament’s website, it is proposed to increase receipts from corporate income tax – by UAH 30 billion, VAT on imports – by UAH 6 billion, VAT on goods manufactured in Ukraine – by UAH 2 billion, fee paid during the legal process for establishing ownership to cars – by UAH 0.75 billion.
At the expense of these additional receipts, the MPs propose to increase spending on subsidies by UAH 12 billion, to UAH 47.295 billion, according to the bill.
In addition, the MPs propose to provide for an additional amount of funding for the road infrastructure in the amount of UAH 15 billion.
“In particular, in 2021, it is planned to carry out repair and construction work on a total length of 4,500 km of state highways, but the existing funding is currently insufficient to implement these plans,” the authors of the bill said in the explanatory note.
The bill also proposes to send additional funding in the amount of UAH 2.5 billion for the construction of social and cultural facilities, transport infrastructure. Thus, it is proposed to increase the amount of subventions from the state budget to local budgets by the indicated amount.
In addition to this, the bill proposes to allocate UAH 1.5 billion from additional receipts for the construction of projects within the framework of the Big Construction state program.
Another UAH 1 billion is proposed to be used to pay off debts and pay salaries to employees of state-run mines. In addition, the MPs propose to allocate UAH 556 million to replenish the charter capital of the state-owned enterprises Boryspil International Airport, Ukraine state aviation enterprise and Ukrservice of the Transport Ministry.
Amendments to the current state budget also imply the following directions: UAH 282 million to provide housing for 215 internally displaced persons who defended the sovereignty of Ukraine, UAH 280.5 million for timely settlements with dismissed military personnel, UAH 176.8 million for providing prisons with food and settlements for utilities, UAH 86.9 million for a budget program for the development of an emergency medical care system and modernization of the material and technical base of healthcare institutions, as well as UAH 10 million for additional circulations of the Uriadovy Kurier newspaper.

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STATE BUDGET FOR 2021 PROVIDES FOR UAH 81.3 BLN FOR ROADS

The national budget of Ukraine for 2021 foresees UAH 81.3 billion for the development of road infrastructure, according to the presentation of the document prepared by the Ministry of Finance and posted on the website of the Cabinet of Ministers.
Out of the indicated UAH 81.3 billion for the development of road infrastructure, UAH 66.4 billion will be financed from the Road Fund. In particular, UAH 31 billion will be used for the development and maintenance of highways of state importance, UAH 18.1 billion for the construction, reconstruction and maintenance of local roads (subvention).
Another UAH 14.8 billion are foreseen for the fulfillment of debt obligations on borrowings under state guarantees for the development of the road network. Also, UAH 2.5 billion in the 2021 state budget has been allocated to ensure road safety.
The development of the road network is also expected at the expense of funds for the implementation of state investment projects in the amount of UAH 250 million, funds of international financial organizations in the amount of UAH 4.6 billion and through borrowing under state guarantees in the amount of UAH 10 billion.
At the same time, the resources of local budgets for the development of municipal roads and streets of united territorial communities (due to excise tax on fuel) is estimated at UAH 8.05 billion.

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BIG CONSTRUCTION ROADS IN UKRAINE TO ALWAYS BE FREE

Ukravtodor (the State Automobile Roads Agency of Ukraine) denies information that a number of roads, renovated and built as part of the Big Construction, will soon become toll roads, the ministry’s press service reports on Facebook.
“On December 23, 2020, at a government meeting, a resolution was approved that sets the maximum amount of payment for one-time travel on roads that are built under the concession. There is not a single road built at the expense of private investors in Ukraine yet. That is, none of the Big Construction roads can become toll this year. The only purpose of the resolution is to create conditions for starting a dialogue with investors on the implementation of concession projects in Ukraine,” Ukravtodor reported.
The press service of the department also said that the construction of concession toll roads necessarily involves a free alternative.
Ukravtodor reported that in November, together with the IFC and the Ministry of Infrastructure, they presented a public-private partnership program in the road industry.
“At the first stage, it is planned to transfer to investors six pilot sections of roads with a total length of 1,400 kilometers. On these sections, the investors have no right to charge a toll, but they will earn on roadside infrastructure and availability payments from the state road fund,” the message says.

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EUR 100 MLN LOAN FROM EIB TO BE USED TO REPAIR THREE ROADS IN LUHANSK REGION

A loan from the European Investment Bank (EIB) in the amount of EUR 100 million will be directed to overhaul of 183 km of roads in Luhansk region, the State Agency for Highways of Ukraine (Ukravtodor) reported.
Funds are provided for capital and current average repairs of the sections:
– route N-26 Chuhuiv – Milove: it covers more than a hundred kilometers, which are planned to be repaired for borrowed funds, because this road connects Luhansk and Kharkiv regions;
– the road P-66 checkpoint “Demyno-Oleksandrivka” – Svatove – Lysychansk – Luhansk, which starts from the border with Russia, a 35 km section has already been repaired, the road is planned to be fully restored;
– road T-13-02 checkpoint “Taniushivka” – Starobilsk – Bakhmut, where work will begin at once on two sections, with a total length of 42 km.
“In 2020, Ukravtodor completed a record amount of road work in Luhansk region: almost 200 km were restored at the beginning of December, and work continues for another 100 km. For comparison, over the past 10 years, only 130 km of roads were renewed. This is one of the most low indicators in the country,” said head of Ukravtodor Oleksandr Kubrakov.
According to him, in 2021, thanks to the funds of international partners, Ukravtodor will restore the transport “triangle” along the Severodonetsk-Starobilsk-Svatove route with access to Troyitske in the north of the region, and in general, thanks to the Big Construction program, a modern road network in the region.
Earlier, the World Bank for Reconstruction and Development has already provided co-financing for this project in the amount of $65 million.

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3,900 KM OF ROADS IN UKRAINE AT FINAL STAGE OF RECONSTRUCTION

There are currently 3,900 km of roads at the final stage of reconstruction in Ukraine (the last sphere of asphalt concrete is being commissioned, completed or is being completed), Head of the State Automobile Roads Agency of Ukraine (Ukravtodor) Oleksandr Kubrakov said in during the presentation of the results of his team’s work during the year on Tuesday.
Among the leaders in road commissioning, he indicated Kharkiv (261.6 km), Zakarpattia (248.3 km), Zaporizhia (220.2 km), Sumy (197.2 km), Khmelnytska (194.3 km), Cherkasy ( 162.9 km) and Lviv (154.9 km) regions.
In addition, Kubrakov said that out of 100 artificial structures that Ukravtodor planned to renovate in 2020, 78 have already been reconstructed. In particular, this is the reconstruction of two bridges on the road R-62 Kryvorivnia – Ust-Putyla – Stary Kuty – Vyzhnytsia – Storozhynets – Chernivtsi; overhaul of the overpass on the road M-12 Stryi – Ternopil – Kropyvnytsky – Znamianka; reconstruction of the bridge on the road N-08 Boryspil – Dnipro – Mariupol.
“Yesterday, a bridge was put into operation in the village of Bushtyno [Zakarpattia region]. It began to be built in 2006, construction was stopped in 2009. The temporary bridge was already falling apart there. It was a question that the road of national importance would simply remain without connection,” he said.
In addition, the construction of a bridge across the Prut River in the village of Marshyntsi on the T-26-06 road (concreting of the roadway, active work at the facility began a couple of months ago), a bridge across the Lukva River in the village of Bodnariv on H-10 road, crossing between the villages of Stary Martyniv and Sivka-Voinylivska on T-09-10 road are nearing completion.
In 2020, Ukravtodor plans to repair 4,200 km of national roads.

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STATE ROADS AGENCY OF UKRAINE INTENDS TO REPAIR 6,800 KM OF ROADS IN 2021

The State Roads Agency of Ukraine (Ukravtodor) intends to repair 6,800 km of roads in 2021, said head of the agency Oleksandr Kubrakov.
“In 2020, the road sector has become a state priority. The program for 2020 envisages 4,000 km of roads. In 2021, we plan to repair and build more than 6,000 km of roads,” he said during an online presentation of the first public-private partnership program on Thursday.

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