Ukraine Road PPP Program: The Ministry of Infrastructure Moves on to the Next Stage of the Implementation
The Ministry of Infrastructure of Ukraine is moving to the next stage of the implementation of its first Public-Private Partnership Program in the road sector and reiterates its commitment to start negotiations with the international financial organizations (IFOs) on funding of the development of feasibility studies and tender documentation for the pilot projects. These include six road segments with a total length of 1400 km, which will be rehabilitated and repaired during the first phase of the Program. This was announced by the Minister of Infrastructure Vladyslav Kryklii.
"We are moving to the new phase of implementation of the PPP Program in the road sector. In close collaboration with Ukravtodor and a consortium of consultants, supported by the IFC and Global Infrastructure Facility, the Ministry of Infrastructure has already developed pre-feasibility studies and conceptual notes for the six pilot projects. We expect that the first tenders for the selection of private partners for these projects to be announced by the end of this year, and we are working actively on this goal. We are also ready to start negotiations with the IFOs regarding the provision of funding for the development of feasibility studies and tender documentation," the Minister said.
The list of six pilot projects includes:
1 - current and capital repairs of Kharkiv-Dnipro-Zaporizhzhya road (M-29, M-04, M-18). The estimated amount of initial investment is $ 370 million.
2 - current repairs of Boryspil-Poltava road (M-03). The estimated amount of initial investment is $ 180 million.
3 - reconstruction, bypass construction, capital, and current repairs of Kherson-Mykolaiv road (M-14). The estimated amount of initial investment is $ 310 million.
4 - capital and current repairs of Kyiv-Zhytomyr-Rivne road (M-06). The estimated amount of initial investment is $ 370 million.
5 - reconstruction, current, and capital repairs of Yagodyn-Kovel-Lutsk (M-07, M-19) road. The estimated amount of initial investment is $ 240 million.
6 - reconstruction, bypass construction, capital repairs of Dnipro-Kryvyi Rih-Mykolayiv road. The estimated amount of initial investment is $ 290 million.
The above-mentioned projects are also included in the List of priority investment projects approved by the Government of Ukraine for the period up to 2023 and involve further maintenance by the investor for the next 20 to 30 years.
On 29 October 2020, the Ministry of Infrastructure, Ukravtodor, the World Bank, and the International Finance Corporation in Ukraine presented the First Public-Private Partnership Program in the Road Sector. It is aimed to attract private funding for the construction and maintenance of roads, and its implementation will allow for attracting up to $ 10 billion in private investments. At the same time, the roads will not be paid for by citizens. The infrastructure will be publicly financed in the form of installment payments for a period of 20 to 30 years. A total of 21 road segments with a total length of 4,500 km were included in the Program.