Road reconstruction in Ukraine
15 April 2008
The European Bank for Reconstruction and Development (EBRD) is to loan Ukraine € 200 million to complete rehabilitation of the final 427 km stretch of the M06 motorway.
The loan will be on-lent to Ukravtodor, the Ukrainian road administration, who will oversee completion of the project.
When complete the 427 km section will link Ukraine's capital Kiev, via its western border, to European Union (EU) countries including Hungary, Slovakia and Poland. The loan follows two previous loans from the EBRD, totalling € 175 million, signed in 2000 and 2005, for the rehabilitation of the first and second phases of the M06 motorway.
Technical cooperation funds for the project, provided by the EU, will finance consultancy assistance for the development of concession legislation and a public private partnership (PPP) strategy. This project element will be crucial for the Bank's continued support of the transport sector reform in Ukraine.
According to Varel Freeman, EBRD first vice-president, the M06 will significantly boost cross-border cooperation between Ukraine and the EU countries. “The transaction also marks the beginning of our strategic partnership with the European Investment Bank in Ukraine, which is expected to provide further € 200 million for the project,” added Mr Freeman.