Ukraine Road Corridors

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

Provision of a sovereign loan of up to EUR 450 million to Ukraine to be on-lent to the State Agency for Restoration and Development of Infrastructure of Ukraine, formerly known as the State Road Agency of Ukraine or Ukravtodor (the "Agency" or the "Client"), consisting of three tranches (the "Project"):

Tranche 1 of up to EUR 183 million to finance the capital repair of M-09 Ternopil - Lviv - Rava-Ruska road section between Lviv and Rava-Ruska;
Tranche 2 of up to EUR 160 million and Tranche 3 of up to EUR 107 million to finance the restoration of operational condition and safety improvements on the sections of M-06 Kyiv-Chop road in Kyiv, Zhytomyr and Rivne regions.

Project ID 50831

Status Disbursing

Location

Ukraine

Business Sector

Transport

Notice Type

State

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Yuriy Miskiv
pmu@restoration.gov.ua
+38 (044) 287 12 15
+38 (044) 287 70 60
https://restoration.gov.ua/
51 Antonovycha Str. Kyiv, 03150 Ukraine

Project ID 50831

Status Disbursing

Location

Ukraine

Business Sector

Transport

Notice Type

State

Environmental Category

Approval Date

16 Dec 2020

Disclosure date

09 Oct 2020

Project description

Tranche 1 of up to EUR 183 million to finance the capital repair of M-09 Ternopil - Lviv - Rava-Ruska road section between Lviv and Rava-Ruska;
Tranche 2 of up to EUR 160 million and Tranche 3 of up to EUR 107 million to finance the restoration of operational condition and safety improvements on the sections of M-06 Kyiv-Chop road in Kyiv, Zhytomyr and Rivne regions.

Project objectives

Tranche 1 will support the capital repair of the M-09 Ternopil - Lviv - Rava-Ruska road section between Lviv and Rava-Ruska on the Polish-Ukrainian border. Tranches 2 and 3 will support the restoration of operational condition and safety improvements on the sections of M-06 Kyiv-Chop road in Kyiv, Zhytomyr and Rivne regions. The ongoing war on Ukraine has prompted a re-assessment of priorities following the redirection of traffic to the land routes connecting Ukraine to the EU. The Project will enable critical road infrastructure repairs on the road links that are part of the TEN-T corridor network and will address the immediate priorities of developing alternative transport routes to facilitate export and import logistics in line with the EU-Ukraine Solidarity Lanes initiative and in response to the war on Ukraine.

The Project will also support legal and regulatory reform objectives aimed at developing a competitive and transparent road construction and maintenance sector.

Transition impact

ETI Score:65

>Primary Quality - Well-Governed. The Project will support the following objectives:

In accordance with the Memorandum of Understanding between the Government of Ukraine and the Bank on Prevention of Corruption and Fostering Transparent and Efficient Management in the Public Sector dated 7 October 2020: (i) development and implementation of a comprehensive anti-corruption programme for the Agency involving the strengthening of procurement, anti-bribery and anti-corruption internal controls, policies and procedures; and (ii) review of procurement procedures at the Agency and introduction of procurement certification by the Chartered Institute of Procurement and Supply ("CIPS");
Implementation of the procurement practices reform including amendments to the national legislation;
Development of legal and regulatory reforms to support road safety objectives.

Secondary Quality - Integrated. The Project will support the capital repair of the M-09 Ternopil - Lviv - Rava-Ruska road (section between Lviv and Rava-Ruska) and restoration of operational condition on the M-06 Kyiv-Chop road (sections in Kyiv, Zhytomyr and Rivne regions), which are strategic road sections making part of the TEN-T corridor network. In addition, the Project will also support the introduction of weigh-in-motion systems to manage the impact of overweight vehicles and implementation of a strategic road safety risk assessment across the national road network to identify and prioritize high risk segments.

Client information

UKRAINE SOVEREIGN

The borrower is Ukraine. The loan proceeds will be on-lent to the State Agency for Restoration and Development of Infrastructure of Ukraine.

EBRD Finance Summary

EUR 450,000,000.00

A sovereign loan of up to EUR 450 million.

Total project cost

EUR 599,100,000.00

EBRD Loan: EUR 450 million

Tranche 1 EUR 183 million

Tranche 2 EUR 160 million

Tranche 3 EUR 107 million

EIB Loan: EUR 50 million

Client's contribution towards VAT: EUR 99.1 million

Additionality

The Bank provides support to strengthen the Agency's capacity with respect to procurement, Project implementation, environmental and social issues, and anti-corruption reforms.

Environmental & Social Summary

All sections are categorized B under the 2019 ESP.

The Environmental and Social Due Diligence ("ESDD") for Tranches 1, 2 and 3 was undertaken by external consultants and confirmed that the Project will result in environmental and social benefits and safety improvements with limited environmental and social impacts, which are expected to generally be temporary in nature, primarily related to the construction activities and can be readily addressed through appropriate mitigation measures.

The ESDD has confirmed that the Borrower's overall capacity, and related EHSS management systems, are generally aligned with the Bank's Performance Requirements ("PRs"). Furthermore, the Borrower is an existing client of the Bank and has demonstrated satisfactory performance to date on the previous projects.

Local EIAs (OVOS) for Tranche 1 have been undertaken in accordance with national requirements to evaluate the risks and impacts associated with the road section and are subject to the state expertise. Findings from the ESDD and Road Safety Audit have been taken into account by the designers and integrated into the Project design. Disclosure of Project related information and public engagement was organised and completed in accordance to the national requirements and additional engagement was undertaken during the ESDD.

Local EIAs (OVOS) for Tranches 2 and 3 will be developed as part of design documentation in accordance with national requirements to evaluate the risks and impacts associated with the road section. Findings from the ESDD and Road Safety Audit will be taken into account by the designers and integrated into the project design. Public engagement with stakeholders and communities was already undertaken during the ESDD and additional disclosure of project related information and public engagement will be organised and completed in accordance with the national requirements and the Stakeholder Engagement Plan developed as part of the ESDD.

Whilst the Project is generally found to be structured to meet EBRD PRs, the ESDD has identified a number of areas for improvement to be further addressed through the implementation of an Environmental and Social Action Plan ("ESAP"). Particular focus is needed on management systems, labour, stakeholder engagement and health and safety. The ESDD for Tranche 1 identified that stakeholder engagement and public consultations should be further improved in regards to the benefits and impacts of the Project with more specific information in relation to road safety, bicycle lanes, informal businesses and accessibility. The ESDD for Tranches 2 and 3 included consultation with local authorities of regions and settlements crossed by the road and surveys of road-side businesses (over 60 people) to identify key areas of concern. The ESDD has identified that further stakeholder engagement and public consultations must be conducted to discuss in detail proposed closures of U-turns as part of the Project, alternative access arrangements and additional travel times associated. Feedback from these consultation activities will inform the final detailed design of the Project, including final scope of U-turn closure, and the engagement will continue prior to and during construction and during operation. Additional stakeholder consultation activities are required in parallel with the Project development in line with the developed Stakeholder Engagement Plan ("SEP").

Occupational health and safety ("OHS") risks are related mainly to the construction phase and will be further elaborated and included into Construction Environmental and Social Management Plan to be provided by the contractors. The construction contractors will be required to comply with the relevant requirements in PR2 including preparation of a HR policy; recruitment procedures and workforce code of conduct; and accommodation standards. If any on-site accommodation is required for workforce it will need to be sited appropriately to minimise E&S impacts and align with the EBRD/IFC worker accommodation guidelines.

There is no physical resettlement associated with the Project. Land acquisition is anticipated to be limited since the works will be restricted to land already part of the current road right-of-way. Any additional land needs and/or effects on informal users of existing land will be confirmed after the design is finalised. Permanent economic displacement is limited due to the retention of existing access points to official businesses or provision of alternative access. Alternative arrangements will also be provided during the construction phase or any temporary access restrictions agreed in advance with businesses. The needs for mobile informal business activities will be further analysed and addressed as part of the regional road network development strategy, including parking infrastructure for trucks and rest areas.

The Client has a Resettlement Policy Framework (RPF) in line with both national and MDB (EIB and EBRD) requirements, which will be updated to cover the Project and is required to prepare and publicly disclose a Resettlement Plan (RP) proportionate to the predicted Project impacts outlined above.

No negative biodiversity impacts are expected. Additional noise impact analysis identified areas where installation of noise screens and additional monitoring are required, and these requirements have been incorporated into the Project.

A road safety audit has been completed and confirmed improvements in relation to the baseline scenario with a number of good international road safety practice measures introduced, including the reduction of U-turns, installation of barriers to separate traffic and bicycle infrastructure connecting settlements along the road. The Bank also will continue broader involvement into policy dialogue and Road Safety reforms once the situation in Ukraine allows. That will include: completion of the Strategic Road Safety Risk Assessment; improved coordination of a Road Safety Department within the Agency; improvement in data collection and analysis system of the road safety data and mandatory implementation of post-construction road safety audits and road accidents monitoring and analysis after completion.

The ESAP has been developed to address the issues raised above, and also to include further improvements to the environmental and social management at all stages of the Project implementation. Among others the ESAP includes: inclusion of E&S provisions in the construction contracts and preparation and implementation of a Construction Environmental and Social Management Plan; integration of climate adaptation measures, improvements in noise monitoring; formalising and developing improved labour and OHS procedures and practices; traffic management plans and safety and emergency response procedures during construction in accordance with PR2 and PR4. In addition, a workers' grievance mechanism will be implemented by both the Client and the Construction contractor.

The ESAP for the Tranche 1, 2 and 3 components was agreed with the Client. The Bank will support the Client through assistance with capacity building and developing the institutional capacity to implement the Project in accordance with the PRs and ESAP. This will include TC's already approved for implementation of LALRP and stakeholder engagement. The environmental and social performance of the Project and implementation of the ESAP will be monitored through annual E&S reports and site visits when deemed necessary.

Technical Cooperation and Grant Financing

TC1: Environmental and Social Assessment for Tranche 1.
TC2: Road Safety Audit for Tranche 1.
TC3: ESIA Gap Analysis for Tranche 2.
TC4: Road Safety Audit for Tranche 2 and Review of the Road Safety Reform Agenda.
TC5: Technical and Economic Due Diligence for Tranche 2.
TC6: Anti-Corruption Action Plan (ACAP). Development of a targeted ACAP for the Agency and support in its implementation.
TC7: Environmental and Social Assessment for Tranche 3.
TC8: Road Safety Audit for Tranche 3.
TC9: Technical and Economic Due Diligence for Tranche 3.
TC10: Procurement Practices Reform.
TC11: Improving Procurement Functional Capability and Procurement Capacity Building Assessment by the Chartered Institute of Procurement and Supply (CIPS).
TC12: Strategic Risk Assessment across the highways network.
TC13: Lender's Technical Monitor to monitor implementation of the Project.
TC14: Action Plan to Support Electric Vehicle Roll-out and Impact Assessment on Funding Model.
TC15: Environmental and Social Impact Assessment for Tranche 2.
TC16: Stakeholder Engagement Support and Capacity Building.
TC17: Anti-Corruption Action Plan Implementation Support.
TC18: Environmental and Social Assessment and Road Safety Audit for the M-09 Project Component.
TC19: Technical and Economic Due Diligence for the M-09 Project Component.
TC20: Technical Due Diligence for the M-06 Project Component.
TC21: Economic Due Diligence for the M-06 Project Component.
TC22: Environmental and Social Assessment and Road Safety Audit for the M-06 Project Component.
TC23: Design support for the M-06 Project Component.

Company Contact Information

Yuriy Miskiv
pmu@restoration.gov.ua
+38 (044) 287 12 15
+38 (044) 287 70 60
https://restoration.gov.ua/
51 Antonovycha Str. Kyiv, 03150 Ukraine

PSD last updated

07 Nov 2024

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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Ukraine Road Corridors

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)