The European Bank for Reconstruction and Development (EBRD) provides a loan of 450 million euros to the Ukrainian state road agency "Ukravtodor". This is stated in the statement issued today by the EBRD.
"The funds will be used for the reconstruction of sections of the M05 "Kyiv-Odessa" road and the construction of a new northern bypass road around Lviv. Both are part of the Trans-European Transport Network (TEN-T) and have strategic importance for Ukraine's domestic and international communications, in particular with the European Union," the statement says.
It is also reported that as part of the project, the government of Ukraine "commits to improve Ukravtodor's procurement system and strengthen its internal control, policies and procedures to prevent bribery and corruption."
According to the bank, financing of "Ukravtodor" will consist of three tranches. Tranches I and III for the total amount of 290 million euros will be directed to the reconstruction of 275 km of the M05 "Kyiv-Odessa" road connecting the capital and the Black Sea ports.
Tranche II in the amount of 160 million euros will be used to finance the construction of the 24-kilometer northern section of the ring road around Lviv.
In addition, it is reported that EBRD funds will finance a strategic assessment of road traffic safety throughout the national road network with the aim of identifying and prioritizing areas with a high level of risk and the implementation of appropriate measures to mitigate the consequences. The funds will also be used to implement systems that allow managing the impact of large-sized vehicles.
