EBRD Supports Road Construction in UkraineBy Worldwide News Ukraine, PRNE
Monday, November 29, 2010
KIEV, Ukraine, November 30, 2010 - The European Bank for Reconstruction and Development (EBRD) is providing
a fifteen-year EUR 450 million sovereign loan facility to the State Road
Administration of Ukraine (Ukravtodor) to finance rehabilitation and upgrade
of the motorways to Kyiv, which form a part of main European and national
corridors in Ukraine. The loan is especially relevant in the light of the
upcoming EURO 2012 football championship finals, hosted by Ukraine.
The loan is provided under EDRD's Pan-European Corridors project, carried
out in Ukraine in transport business sector, covering a number of regional
key roads. Sovereign lending will be provided in two tranches. On top of
that, the lending facility is expected to be accompanied by a loan of the
corresponding size from the European Investment Bank to co-finance the
The Bank and Ukravtodor have been successfully cooperating for 10 years.
During this time EBRD has provided Ukraine with EUR 375 million. This money
divided into three loans has served rehabilitation of almost 700 kilometers
of the M06 motorway. "This is one of the key arterial roads in the country,
which forms part of Pan-European Corridors III and V, linking Ukrainian
capital with the EU, rehabilitation of which will be completed under the new
project," said Anton Usov, chief adviser on external relations of the EBRD
office in Kyiv.
Improving transport situation in Ukraine will boost country's
integration in the region and positively affect its hosting of EURO 2012.
The project is not restricted to capital investment only. Its successful
implementation is also aimed at introduction of performance-based road
maintenance contracts, which would increase competition; reforming sector
financing, road network management and administration.
"Our loan will also contribute to important reforms in the
sector, which will determine its proper functioning and competitiveness in
the future," noted Sue Barrett, the director of the EBRD Transport
YevhenPrusenko, Deputy Head of Ukravtodor, said that "signing of this
loan agreement with the EBRD is the evidence of trust of the International
Financial Institutions (IFI) to our country and reforms initiated by the
President and the Government."
The European Bank for Reconstruction and Development is Ukraine'slargest
financial investor. As of 1 November 2010, it had alreadyinvested over EUR
5.3 billion into 206 projects.
For more information, please contact Natalya Shulevskaya +380633776645,
news at wnu-ukraine.com, Project Manager at Worldwide News Ukraine
Tags: Kiev, November 30, Ukraine, Worldwide News Ukraine