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Road PPP Program
Partnering for Better Roads
Pilot
6
projects
Initial investments
up to $ 2 bln
1.4 ths km of roads
10 regions
12 mln of Ukrainians
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About Program

The purpose of the Road PPP Program is to engage the private sector in Ukraine’s existing road network through PPP contracts to facilitate quality road network upgrades and long-term maintenance through private investment.

Background

  • A significant portion of Ukraine’s road network is in poor condition and needs repairs.
  • 2020 was announced as a year of a national Great Construction Program aiming to connect the country with modern highways.
  • Having limited resources to achieve its goals, the Government plans to increase the share of private investment in the roads sector.
  • Based on successful examples from the neighboring countries, Government with assistance from World Bank Group developed a model for attracting investors and identified 6 pilot road sections to be upgraded and maintained on the PPP basis.

Key feature
of the Road PPP Program

The availability payment PPP contracting option is considered the most suitable for the Program. Under this option the private partner finances the rehabilitation and long-term operation and maintenance of the road segment. In exchange, it receives availability payments - a contractually agreed-upon amount, that is contingent on the private partner meeting the specified performance standards (KPIs) and output specifications.

Three pillars of the Program
interests of all stakeholders are met:

Private investors

  • Investors will benefit from a bankable road PPP structure thanks to the absence of traffic risks, and a well-capitalized Road Fund.
  • Support from WBG, Ministry of Infrastructure, and UAD, guarantee that the PPP projects will be well-structured and transparently procured.

Ukrainian citizens

  • With long-term high-quality road upgrades, Ukrainian citizens and businesses will enjoy driving at faster speeds on safer roads. Road upgrades will make the journeys more comfortable, safe and ignite regional economic development.
  • Competitive and transparent PPP procurement will ensure that tax-payers' money is well-spent

The Government

  • Engaging private investors makes it possible to improve more roads within next several years.
  • Successful pilot road PPP projects will also signal to foreign investors and financiers Ukraine’s readiness to scale up PPPs in other infrastructure sectors, which will result in additional FDI.
UA PPP Program's Details
6 Pilot Projects of the Program
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READ MORE ABOUT PROGRAM

Timeline

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News

Vladislav Krikliy
Minister of Infrastructure of Ukraine
The type of model which is suggested by the PPP Road Program will eventually allow attracting private investors to Ukraine’s road market. In the medium term, implementation of the entire Program will attract more than $ 9 billion of private investment to rehabilitate and maintain more than 4,500 kilometers of state roads. This Program is not about toll roads but about an effective model of using funds for road construction. This model is beneficial to taxpayers, investors, and the state. We already have the first concession ports – now we are working on the introduction of road concession
OLEKSANDR KUBRAKOV
Head of Ukravtodor
Many of the roads are being rehabilitated this year as part of the President's Program, ‘Great Construction.’ However, road improvements and maintenance are as important as rehabilitation. We have already increased a budget for road maintenance in 2021 and reviewed all design solutions. With the private sector’s involvement, we expect to ensure high-quality, safe, and comfortable roads that will enable efficient traffic management.
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Contact us by email info@roadppp.in.ua

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