Published: December 1, 2010
Kiev routes redevelopment plan to boost economy.
Ukraine’s government is to continue upgrading the road network to the country’s capital after securing a €450mn loan from the European Bank for Reconstruction and Development (EBRD).
The proceeds will be used by Ukravtodor, the country’s state road administration, to rehabilitate 400 kilometres of roads in the approaches to Kiev.
EBRD’s financing, which will be provided in two tranches, is expected to be matched by a similar-sized loan from the European Investment Bank.
This agreement continues a decade long partnership between the EBRD and Ukravtodor. The bank has already provided €375mn in three loans to rehabilitate almost 700 kilometres of the M06 motorway, one of the key roads in the country, which forms part of Pan-European Corridors III and V, linking the Ukrainian capital with the EU. The rehabilitation of this road will be completed under the new project.
The aim is to stimulate economic growth by increasing regional integration through improved transport links. It will also help prepare the country for its co-hosting of the European football championships in 2012.
Sue Barrett, the EBRD’s director for transport, says the bank is supporting a key infrastructure project for not only the country but the region.
Yevgen Prusenko, Ukravtodor’s deputy head, says the agreement with the EBRD shows the trust international institutions have in the government’s reforms. “Ukravtodor’s long-term experience in co-operation with international financial institutions gives us confidence in the success of this project, which is so important for our transport system.”