EBRD Supports Road Construction in Ukraine

KIEV, Ukraine, November 30, 2010 /PRNewswire/ -- 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 project.

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 Department.

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.

SOURCE Worldwide News Ukraine