11:46 05.07.2016

Ukravtodor notes some problems in implementation of joint projects with IFIs

2 min read
Ukravtodor notes some problems in implementation of joint projects with IFIs

The State Automobile Road Agency of Ukraine (Ukravtodor) and international financial institutions (IFIs) face some problems in the implementation of joint projects, in particular, a lack of financing of the road sector.

The press service of Ukravtodor reported that in the conditions of chronic underfunding the blueprints are drafted and passed by the government five-eight years before the real signing of the contract and implementation of the project.

"This results in the destruction of roads, while hryvnia is devaluated and the cost of repair or road construction becomes higher compared to the assessments made by specialists earlier," the agency said.

Ukravtodor Head Yevhen Barakh said that today neither the state nor the road sector can afford works at the new prices. The problem is that IFIs demand to implement the projects according to the budgets approved earlier, while the cost of some works has soared and there is no necessity to conduct these works, according new assessments of specialists.

Barakh said that if Ukravtodor had a road fund with annual 100% financing of UAH 100 billion, there would have been no problems with the increase in the cost of works.

"Let's take into account the economic situation in Ukraine and then not to explain the public why the highway was made on Obukhiv road and there is a lack of budget funds even for the pothole repair on the Kirovohrad-Mykolaiv road," he said.

He said that modern highway construction projects to bypass towns should be designed. This would help to avoid building a large number of expensive highway junctions and artificial facilities for safe movement of people.

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