EBRD Provides Loan for Road Infrastructure in Ukraine
Supporting two major goals of the government of Ukraine, improving the national road infrastructure and fighting corruption, the European Bank for Reconstruction and Development is providing a EUR 450 million loan to the state road agency Ukravtodor. The funds will be used to finance the rehabilitation of sections of the M05 Kyiv-Odessa road and the construction of a new northern bypass around the city of Lviv. Both are part of the Trans-European Transport Network TEN-T and of strategic importance for Ukraine’s domestic and international connectivity, in particular with the European Union.
Under the project, the government of Ukraine is committing to enhance Ukravtodor’s procurement system and to strengthen its internal controls, policies and procedures to prevent bribery and corruption. This is the pilot programme under the Memorandum of Understanding signed in October 2020 between the government of Ukraine and the EBRD to strengthen corporate governance in the state sector and to implement robust anti-corruption and procurement controls in state-owned enterprises.
Ukravtodor initiated the anti-corruption programme with the EBRD earlier this year, as the total length of rehabilitated roads saw record levels.