The European Bank for Reconstruction and Development (EBRD) and the government of Ukraine in London on Friday signed a memorandum of understanding on the projects to finance the rehabilitation of the M05 Kyiv-Odesa road in Cherkasy, Kirovohrad, Mykolaiv and Odesa regions of 314 km long as well as the construction of a northern section of the bypass around the city of Lviv of 23 km long.

The EBRD said in a press release that the memo was signed by Ukrainian Prime Minister Oleksiy Honcharuk and EBRD President Suma Chakrabarti.

The projects are expected to be implemented by Ukravtodor, the state roads agency. As part of the engagement the EBRD would also support the reinforcement of corporate governance and anti-corruption practices at the agency, the reform of the road sector in Ukraine and the implementation of measures to enhance road safety.

The allocation of EBRD financing is subject to the successful finalisation of the full project-review process, including feasibility and environmental studies, and final approval by the bank's Board of Directors.

The similar memorandum of understanding will be signed with the European Investment Bank (EIB) on Friday.

As reported, the total amount of financing for this project by the EBRD and the EIB will be up to EUR 900 million, each of the international financial institutions will provide financing in the amount of up to EUR 450 million.

The EBRD is the largest international financial investor in Ukraine. Since the start of its operations in the country in 1993, the bank has made a cumulative commitment of more than EUR 14.5 billion through 450 projects in Ukraine.