Ukraine's pivotal plans

The authorities in the Ukraine are in discussions regarding financing for a major road project, as well as making plans for the country's first ever highway concession.
Highway & Network Management / February 16, 2012
The authorities in the Ukraine are in discussions regarding financing for a major road project, as well as making plans for the country's first ever highway concession. The latter is of key importance for the country. Ukraine's State Road Adminstration, 2780 UkrAvTodor is opening the tender process for a 74.6km stretch of the Big Ring project, which will see the construction of a new ring road around capital Kiev. The project is being split into three major sections and in all, will measure 213km long and cost an estimated US$6.9 billion.

Amongst the major components are two bridges spanning the Dniper River and over the Desna River, structures that will measure 8.2km, 4.5km and 2km respectively. The aim of the project is to remove through-traffic from the centre of Kiev and to provide a key link in the highway connections between Asia and Europe.
At present some 11,000-62,000 vehicles/day use parts of the various sections that will become the ring road.

However traffic volumes are expected to grow once the link is constructed and could range from 100,000-170,000 vehicles/day according to UkrAvTodor's official estimates. The first phase of the project is from Kiev to the Znamianka Road and will run through Chernigv and Novi Yarolovychi. The second phase will connect the Kovel Road with Kiev, while the third phase will be from Kiev to Chernigiv.

Meanwhile the $450 million road project concerns the Kiev-Kharkov-Dovzhansky link and in particular, rebuilding of the stretch between Lubny and Poltava. UkrAvTodor, is in discussions with the 2332 World Bank for loans that would help finance the project.

Road construction is a major issue in the Ukraine and UkrAvTodor has previously said that its road budget for 2011 is only sufficient to cover basic maintenance and will not stretch to major highway upgrades or expansion of the country's 170,000km network. It is for this reason that the ring-road around capital Kiev is being offered on a concession basis for example. The country requires a road budget seven times the present sum, with around 90% of the Ukraine's roads in poor condition according to a previous statement by a senior UkrAvTodor executive.

Some $595 million was provided at the end of 2010 by the 1166 European Bank for Reconstruction and Development to UkrAvTodor under a 15 year loan agreement for improvements to roads around Kiev. Plans were also made for a similar sum for further work in the same area being provided by the 1054 European Investment Bank.

Consultant 2782 WSP has been working with UkrAvTodor on a road sector review and the development of a Road Management Reform Plan. The aim of this would help define a strategy for reform of road administration and management. WSP's team has identified and made recommendations on improving road financing for state and local roads, based on available and potential sources of revenue and the maintenance needs of the network.
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