The EBRD is providing a ?200 million sovereign loan to Ukraine with the proceeds to be on-lent to Ukravtodor, the Ukrainian road administration. The project will finance the rehabilitation of the final 427 kilometre stretch of the M06 motorway connecting Ukraine’s capital Kiev with European Union countries such as Hungary, Slovakia and Poland. 

This section of the motorway is the final link to provide a high standard through route from Kiev to the western border of the country. The transaction builds on the two previous successful projects for a total amount of EBRD funding of ?175 million signed in 2000 and 2005, respectively, for the rehabilitation of the first and second phases of the M06 motorway.

Technical cooperation funds for the project, provided by the EU, will finance consultancy assistance for the development of concession legislation and a public private partnership (PPP) strategy. This project element will be crucial for the Bank’s continued support of the transport sector reform in Ukraine.

The Bank is particularly proud to participate in the completion of this important transport link, which will significantly boost cross-border cooperation between Ukraine and the EU countries, said Varel Freeman, EBRD First Vice-President. The transaction also marks the beginning of our strategic partnership with the European Investment Bank in Ukraine, which is expected to provide further ?200 million for the project, he added.

The European Bank for Reconstruction and Development is the biggest financial investor in Ukraine. As of the end of October 2006 it had committed over ?2.5 billion through more than 120 projects.


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