EBRD Allocates €190 Million for the State Agency for Roads of Ukraine

by Meifan Honcharuk
Friday, December 17, 2021
EBRD Allocates €190 Million for the State Agency for Roads of Ukraine

EBRD funds are allocated taking into account the steps taken by Ukravtodor to improve management efficiency

After the steps taken by the State agency for roads of Ukraine (Ukravtodor) to improve management efficiency, the Board of directors of the European Bank for Reconstruction and Development (EBRD) decided to allocate a new tranche of €90 million to improve the country's road infrastructure further.

The tranche is provided as part of a financing package totaling €450 million and is intended to improve the technical and operational condition of sections of the Kyiv-Odesa highway in the Kirovograd, Mykolaiv and Odesa regions.

The allocation of the new tranche was made possible by the progress made by Ukravtodor in overhauling the agency's management systems to advance the necessary reforms further. In particular, independent experts developed a comprehensive anti-corruption action plan approved by a high-level steering group, including government representatives, the president's office, EBRD, and Ukravtodor.

The plan, which has already begun, involves a comprehensive approach to ensuring integrity and compliance, improving corporate governance and internal mechanisms, policies and procedures to prevent corruption. It should also foster a culture of integrity throughout the organization.

The reform in Ukravtodor aimed at overcoming corruption in the road sector is a pilot program under the Memorandum of understanding between the government of Ukraine and the EBRD on strengthening corporate governance in the public sector, signed in October 2020.

The implementation of this reform will serve as a litmus test for the EBRD — supported broader program to prevent corruption and improve governance in state-owned enterprises and public institutions in Ukraine.

In addition, Ukravtodor has developed an action plan to develop electric mobility, which should contribute to a broader spread of electric transport in the country, and is also creating a separate road safety unit.

The EBRD is a leading institutional investor in Ukraine. The bank has already invested nearly €16 billion in 506 projects across the country, focusing on helping stabilize the economy and consolidate the results of reforms, improving energy efficiency and energy security, and supporting projects in agriculture, industry, and the small and medium-sized business sector.


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