The state office for motor roads of Ukraine, Ukrautodor, and the European Bank for Reconstruction and Development, in the framework of the joint project for improvement of transport and operating condition of roads on the approaches to Kyiv, have signed a loan and project agreements worth 450 million euros.

According to first deputy head of Ukrautodor, Yevhen Prusenko, the loan agreement was signed for 15 years with a four-year grace period at an interest rate of eurolibor+1%, which is four to five times lower than the actual rate of interest.

The credit will be issued in two tranches: the first of 250 million euros and the second 200 million euros. Today it's the biggest project of EBRD in Ukraine in the sphere of transport. With it the number of projects in the transport sector of Ukraine is up to twenty, EBRD's Director for Transport Sue Barrett says, UKRINFORM reported.

The loan was drawn by Ukrautodor for reconstruction and overhaul of parts of six major roads on the approaches to Kyiv, including highways Kyiv-Chop and Kyiv-Kovel-Yahodyn within the UEFA EURO 2012 program, provided the European Investment Bank's co-financing.

This is a joint project of Ukraine, EBRD and EIB for a total of 1,070 million euros, of which 170 million euros is the part of Ukraine, 450 million euros EBRD and 450 million euros EIB.

According to Prusenko, the negotiation process is underway with the EIB, and the loan agreement with the bank will most likely be signed early next year.

It is assumed that the project will begin in 2010 and complete in 2025.

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