The Cabinet of Ministers of Ukraine has approved the conditions for borrowing by the State Automobile Roads Agency of Ukraine (Ukravtodor), Infrastructure Minister of Ukraine Vladyslav Krykliy said in his Telegram channel.
According to him, the funds will go to works at about 100 state-sustained building facilities.
“The interest-bearing bonds will be issued without making a public offer, the obligations under which are secured by the government. The conditions are the following: face value of one bond is UAH 1,000; interest income on bonds – 12.5% per annum and paid quarterly; bond circulation period – from one up to five years depending on its Series; the bonds is issued in five Series,” he said.
Krykliy said that this will restore roads, create jobs and stimulate contracting enterprises.
The State Roads Agency of Ukraine (Ukravtodor) plans to implement a project to develop a network of roads in western Ukraine in five years, Ukravtodor has said in its Telegram channel.
The project provides for the connection of the regional centers of western Ukraine with each other and with existing transport corridors by high-speed highways with a permitted speed of 110-130 km/h.
The full implementation of the project is planned to be completed in five years.
Ukravtodor said that in 2020 the project for the construction of the Lviv Northern Orbital Road, as well as the first stage of the Dubno, Stryi and Ternopil orbital roads, is ready for implementation. Financing of orbital roads of these cities is provided at the expense of borrowed and grant funds of international financial institutions.
At the same time, international agreements on financing these projects have already been concluded, and procurement procedures will be announced in the coming months.
The RDS group of road construction companies will continue road work during the quarantine established due to the spread of coronavirus, and plans to continue to fully fulfill its obligations, RDS co-owner Yuriy Shumakher has told Interfax-Ukraine.
“We express support for the decision of the Ukravtodor management not to curtail the planned projects. The development of infrastructure in the country is the key to Ukraine’s competitiveness and success,” he said.
“The group of RDS road construction companies minimized attendance at work for the staff, but we continue to fully implement all of our road construction projects,” Shumakher added.
According to him, contractors and suppliers in all regions of the presence of RDS Group are working smoothly, there are no problems with the provision of construction materials.
Ukravtodor on March 17 announced its support for the government’s initiatives to prevent the spread of the coronavirus COVID-19 in Ukraine and continuation of all roadwork as usual.
“Ukravtodor supports the government’s initiatives to prevent the spread of the coronavirus COVID-19 in Ukraine. Therefore, we strongly recommend that everyone who can work remotely take this opportunity. At the same time, we want to emphasize that the deceleration of the season of road works is not yet expected. All construction and repair work continues as normal,” the state agency said.
The Ukrainian group of companies RDS includes Kyivshliakhbud and Rostdorstroy. Its core business is construction, modernization and maintenance of roads and bridges, construction of airfield complexes.
The company is building concrete road H-14 Kropyvnytsky-Mykolaiv. As part of the reconstruction of the H-31 Dnipro-Reshetylivka highway in Poltava region, RDS is building an overpass over the railway and the section of the first concrete road in Ukraine. In 2019, the company won a World Bank tender for work on the first category highway M-03 Kyiv-Kharkiv-Dovzhansky.
As of January 2020, the company operates in seven regions of Ukraine and has ten production facilities.
The ultimate beneficial owners of RDS are Ukrainian citizens Yuriy Shumakher and Yevhen Konovalov. The charter capital of the company is UAH 5.13 million.
The State Agency of Automobile Roads of Ukraine (Ukravtodor) does not intend to stop road works during the quarantine due to the coronavirus disease (COVID-19) spread.
“Ukravtodor supports government initiatives to prevent COVID-19 spread in Ukraine. Therefore, we strongly recommend that everyone who can work remotely take this opportunity. At the same time, we would like to say that the deceleration of road works season is not yet expected. All construction and repair work continues as usual,” the agency said in a statement posted on its website.
Ukravtodor said that the agency insists that contractors put into place the necessary arrangements for the safe work of employees, in particular, conduct an information campaign on virus diseases prevention, regularly monitor the employees’ state of health, and also make disinfectants available.
The State Agency of Automobile Roads of Ukraine (Ukravtodor) has begun road repair and construction work at 118 sites in 18 regions, Head of Ukravtodor Oleksandr Kubrakov said on his Facebook page.
He noted that 100 objects are funded by the State Road Fund and 18 in the framework of cooperation between Ukravtodor and international financial organizations.
“Mostly preparatory work is being done at this stage, but, for example, asphalt is already laid on roads H-30 and H-09,” he added.
Other facilities, he said, are still at the public procurement stage. In 2020, some 289 tenders were announced, the total expected cost is UAH 28 billion.
The State Agency of Automobile Roads of Ukraine (Ukravtodor) and JSC Ukrzaliznytsia have agreed to coordinate the logistics of construction materials deliveries to facilities being built as part of the government’s Big Construction program, the Ukravtodor Telegram channel reported.
The parties agreed on an optimal model for the information exchange to ensure timely delivery of raw materials to the Big Construction facilities.
“Ukravtodor assumes a coordinating role for the proper planning of freight traffic along the Ukrzaliznytsia routes. Ambitious plans require well-coordinated work of public and private institutions, so with reasonable coordination, we will avoid delays and breakdowns in repairs,” Oleksandr Kubrakov, the head of Ukravtodor, said.
The information exchange on the volumes of raw materials needed to be transported and maintenance of the repair schedule will take place on the basis of Ukravtodor for the purpose of centralized planning of all work.
Remigiusz Paszkiewicz, a member of the board of Ukrzaliznytsia, in turn, said that using Ukrzaliznytsia railways are important for freight transportation, as it unloads roads and reduces transportation cost.