European integration
The Cabinet of Ministers of Ukraine adopted the National Transport Strategy 2030, for which the Ministry of Infrastructure together with Ukravtodor, Ukrzaliznytsya, the Administration of Seaports and the State Aviation Service have elaborated a draft plan for the implementation of the strategy with the list of priority infrastructure projects for 2019-2021.
The Ukrainian transport system is included in the European network of TEN-T, which enables to attract European Union funding. And in December 2018, Minister of Infrastructure Volodymyr Omelyan signed the first agreement of a new format Transport Communications (where 60 million euro is not a loan, but technical assistance).
For the first time in the EU, the certification of the EASA provider of air navigation services of the non-EU country – UkSATSE has been carried out for restoration of flights to the Uzhhorod airport, as the aircraft for take-off and landing pass through the territory of the Slovak Republic.
The Ukrainian maritime sector for the first time and successfully passed the IMO audit after ratification of a number of international conventions, but it is necessary to work on the implementation of the Paris Memorandum for the control of ships under the Ukrainian flag.
Loans
We began jointly with cities to implement a plan for the procurement of electric vehicles in 11 cities of Ukraine for European Investment Bank and the European Bank for Reconstruction and Development loans totaling 400 million euros.
A loan agreement with the EIB has been signed for 75 million euros for road safety projects in Kyiv, Lviv, Odesa, Kharkiv and the Dnipro – a unique project to reduce mortality and traffic accidents.
Completed tenders and technical documentation for construction of roads and border crossing points on the border with Poland and Hungary in accordance with loan agreements worth 150 million euros.
Ukrzaliznytsia attracted $150 million US dollars of EBRD loans for the first time without state guarantees for the production of freight wagons.
However, it did not start the electrification of Dolynska – Mykolayiv in accordance with the EIB and EBRD credit agreements worth 300 million euros.
Transit
The completion of the construction of the Beskydy Tunnel to increase rail transportation between Ukraine, Hungary and the Slovak Republic is EBRD and EIB loans of $100 million.
Increased the number of permits for international road transport with all neighboring countries (except Poland) and we are preparing draft contracts with Romania and Hungary.
The joint venture did not work between the railways of Ukraine, Georgia and Azerbaijan for operating the ferries, so this issue must be solved in a complex way with the concession of the railway and ferry complex in the port of Chornomorsk.
The transit of the Trans-Caspian transport route is declining, therefore, Ukraine should lead the international TRACECA organization for the development of this transport corridor.
The aggressive actions of Russia in the Sea of Azov and the restriction of the passage of Kerch-The route of the port of Mariupol and Berdyansk is reduced by the channel of the Yekaterinburg: it is necessary to invest in the infrastructure of Azov (railway line Kamysh Zorya and Zaporizhya-Mariupol highway) and to increase sanctions.
Investments
China Harbor successfully implemented dredging projects of 1.5 billion hryvnias to the bottom of the ports of Yuzhny and Chornomorsk, which makes it possible to receive vessels with a larger deadweight.
There is no progress in road works in line with EBRD and World Bank lending programs under Sinohydro and Xinjiang contracts for projects bypassing Zhytomyr, Lubny-Poltava and Khmelnitsky-Vinnytsia.
An agreement was signed and implemented with General Electric on the purchase of 30 diesel locomotives and the localization of production at the Kryukivsky car building plant. The construction of a new runway is underway in the Odesa airport, and the work of airports in Poltava and Mykolayiv has been restored. Feasibility study for concessions of ports of Kherson, Olvia and railway and ferry terminal of the port of Chornomorsk has been developed.
Plan for 2019:
Adopt 5 basic draft laws for the implementation of the association agreement with the EU – on rail, inland waterway, road transport and transportation of dangerous goods.
To sign a loan agreement with Eximbank of China on attracting $340 million to Kremenchug.
Find financing for the construction of Podolsky-Voskresensky bridge in Kyiv, bridges in Zaporizhya and Mykolayiv.
To announce competitions for the concession of Lviv-Krakivets and 1st round of the Great Ring Kyiv (“Double Kalynivka” project).
To sign a loan agreement with the EIB for the development of inland water transport and river infrastructure of the Dnipro (dredging, repair of locks).
Prepare a project for the supply and financing of joint production of electric locomotives for Ukrzaliznytsia. Sign the Agreement on the Common Aviation Area with the EU for the growth of passenger traffic, low-level connections and the entry of new airlines into Ukraine.
European integration and foreign investment in infrastructure are the key to economic growth and development of the country.
Viktor Dovhan is the deputy minister of infrastructure for European integration.
