You're reading: Overhaul of Kyiv-Odesa highway section to start in July

Overhaul of one of the main highways in Ukraine – Kyiv-Odesa – will start in July 2013, the press service of the State Agency of Automobile Roads of Ukraine (Ukravtodor) has reported, referring to its head, Yevhen Prusenko.

“The criticisms from drivers regarding this highway mainly concern the Kyiv-Zhashkiv section, which has gone practically without repairs for around 30 years,” reads the report, citing Prusenko.

He said that in 2004, the Zhashkiv-Krasnoznamianka section was overhauled and today its condition is good.

“This year, in July, we’ll start the overhaul of the Kyiv-Odesa highway on the Kyiv-Bila Tserkva section. From 13th to 17th kilometer the section will be repaired using budget funds. From the 17th to 87th kilometer [the work will be paid for] using funds of the EBRD [European Bank for Reconstruction and Development] and European Investment Bank [EIB],” he said.

He also said that at present, the talks on the further crediting of the reconstruction of the rest of the sections of the Kyiv-Odesa highway are underway.

“In addition, we plan to lay an upper layer of asphaltic concrete on the Krasnoznamianka-Odesa section, which has been used in the medium and lower layers since 2007,” Prusenko said.

As reported, the Ukrainian parliament in November 2011 ratified the European Roads Ukraine II financial agreement between Ukraine and EIB, under which the country will receive a loan of € 450 million to build and repair roads near Kyiv.

The credit agreement was signed on May 27, 2011. The funds are raised for 20 years with the beneficial five-year period. The credit rate is 2.5 percent per annum, and the commission fee is 0.25 percent of the loan sum.

Earlier, the EBRD provided a € 450 million loan, signing the correspondent agreement with Ukravtodor on November 26, 2010. The agreement foresees the credit rate of Libor+1 percent. It is issued for 15 years with the grace four-year period.

The total cost of the project on repair of approaching roads to Kyiv is assessed at € 1.07 billion. Ukraine will pay € 170 million.