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EUR100 million loan for Kiev-Chop motorway
EBRD continues support for Ukraine’s road sector
The EBRD is lending €100 million to help rehabilitate a portion of Ukraine’s
824-km M06 Kiev-Chop motorway, which links the country’s capital with western
Europe. The deal is the first since election of a new government and builds on
the successful road-sector policy dialogue with previous governments.
The sovereign loan, with proceeds to be on-lent to the Ukrainian road
administrator, Ukravtodor, will fund further rehabilitation and construction
works at M06 sections around Lviv in western Ukraine, as well as the
preparation of a road-sector administration and management improvement plan.
The project builds on the cooperation between the Bank and Ukravtodor, which
started in 2000 with a €75 million EBRD loan to rehabilitate the M06 section
between Chop and Stryi, and which led to significant improvements in
road-sector financing. The M06 motorway forms part of Pan-European Corridors
III and V, which link central Ukraine with the EU member states, and its
development is a priority of the Ukrainian government.
This project shows our clear commitment to support Ukraine, and to the reforms
in the transport sector in particular, said Olivier Descamps, EBRD Business
Group Director for Ukraine and South East Europe. We hope to build on this
positive example of cooperation with the new government and to implement
further similar infrastructure projects in the near future.
The project should help maintain the momentum of reforms to be undertaken by
the Ukrainian government. Transport-sector development is also one of the key
elements of the Bank’s new strategy for Ukraine, which is being discussed with
the government and should be adopted by the end of the first half of 2005.
The Bank’s cumulative investments in Ukraine stand at €1.5 billion through 64
projects, including €257 million for 10 projects to infrastructure and €387
million for 15 projects to banking and small and medium-sized enterprises
(SMEs).
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