A loan for the rehabilitation of sections of the M06 highway west of Kiev and purchase of road maintenance equipment; technical assistance for project preparation and implementation; and reform of road sector finance.
The proceeds of the Bank's loan will be used to rehabilitate important sections of the M06 highway, one of the most important roads in Ukraine. The project will also assist Ukravtodor with the restructuring of road sector financing and administration.
The project will introduce competitive tendering for civil works contracts.
In addition, the loan will allow Ukravtodor to concentrate on its client functions, its ability to manage increased annual turnover and the privatisation of its non-client related activities.
Lastly, it is anticipated that the project will encourage private sector investment in the construction industry, currently dominated by state-owned enterprises.
The client is Ukraine. The proceeds will be lent on to the Ukrainian State Corporation for Road Construction, Repair and Maintenance (Ukravtodor): the Ukrainian road administration.
€75 million loan.
This project was screened B/0 and an environmental analysis was completed for the project. The analysis revealed that the impacts associated with the project would not be significant. They would be limited to noise, safety, dust/air quality during construction. Mitigation measures to address these impacts will be included in tender documents. The project will also meet relevant EU and national environmental requirements, which will also be incorporated into the contracting and tender documents.
Preparation of detailed design and tender documents and civil works supervision is to be financed by EU-TACIS.
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