The European Bank for Reconstruction and Development (EBRD) may allocate three tranches of a sovereign loan of EUR 450 million to Ukraine for the rehabilitation of the Kyiv-Odesa highway and the completion of the bypass around the city of Lviv.

According to a posting on the bank's website, the project is pending approval on December 16, 2020.

The first tranche in the amount of up to EUR 100 million is intended for to finance the rehabilitation of the M-05 Kyiv-Odesa road section in Cherkasy region, the second tranche of up to EUR 160 million is intended to finance the construction of a northern section of the bypass around the city of Lviv. The third tranche in the amount of up to EUR 190 million will be sent to rehabilitate the M-05 Kyiv-Odesa road sections in Kirovohrad, Mykolaiv and Odesa regions.

The project will be implemented by the State Road Agency of Ukraine (Ukravtodor). The project will also support legal and regulatory reform objectives aimed at developing a competitive and transparent road construction and maintenance sector.

The total cost of the project is EUR 1.147 billion, of which EUR 450 (million) is a loan from the EBRD, EUR 450 (million) is a loan from the European Investment Bank (EIB) and EUR 247 million are funds of Ukravtodor.