World Bank, Ukravtodor sign credit agreement on new road project
World Bank Country Director for Ukraine, Belarus and Moldova Qimiao Fan and Chairman of the State Agency of Automobile Roads of Ukraine (Ukravtodor) Volodymyr Demishkan have signed a loan agreement to finance the Second Road and Safety Improvement Project (RSIP2) in Ukraine.
According to the press service of the World Bank, the World Bank’s Board of Executive Directors approved a $450 million loan for the RSIP2 on September 20, 2012.
The project will improve the condition and quality of sections of the Kyiv-Kharkiv road between the cities of Lubny and Poltava and enhance road safety along several road corridors in Ukraine.
"The project will lead to the reduction of cost and time spent on moving people and goods on this key road artery of the country," said Qimiao Fan.
According to him, it will also contribute to improved road safety on selected road corridors and decrease the number of road accidents. The project will bring significant positive social and economic benefits to local communities by creating more economic activities and jobs.
The Second Road and Safety Improvement Project will be implemented by Ukravtodor. The primary beneficiaries of the project are Ukraine’s road users and the local communities along the road. The RSIP2 is a follow-up project to the ongoing Road and Safety Improvement Project (RSIP1), which the World Bank supports through a loan of $400 million, which was approved by the World Bank Board in 2009. The implementation of the RSIP1 has been progressing well and has brought better road conditions and road safety of the Kyiv-Kharkiv road between the cities of Boryspil and Lubny.
The new project will also help Ukraine make its roads safer in the context of the United Nations Decade of Action for Road Safety. The project will apply safe road engineering measures such as intersection improvements, road markings, and pedestrian facilities.
"We look forward to the timely and successful implementation of the new road project so as to bring tangible benefits to the ordinary citizens of Ukraine quickly," Fan said.
The project is fully consistent with the new Country Partnership Strategy for Ukraine for the period of 2012-2016. Since Ukraine joined the World Bank in 1992, commitments to the country total over $7.5 billion for 41 operations.
