EBRD will provide EUR 182 million for road modernization in Ukraine to improve transport links between Ukraine and the EU
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The Minister of Finance of Ukraine Sergii Marchenko has signed an Agreement amending and restating the Loan Agreement dated December 18, 2020 "Development of the Trans-European Transport Network" (Ukraine - Road Corridors) between Ukraine and the European Bank for Reconstruction and Development (EBRD).
The purpose of the amendments to the EBRD Agreement is to improve the capacity of existing transport links, as well as to improve transport accessibility in the region and reduce logistics costs in Ukraine-EU transportation.
The amendments allow for a EUR 182 million of the existing EBRD sovereign loan to be allocated to improve the M-09 Ternopil-Lviv-Rava-Ruska road, which leads to the Ukrainian border with Poland.
The Loan Agreement of December 18, 2020 between Ukraine and the EBRD, envisaged the provision of EUR 450 million for improving road infrastructure and facilitating international transport corridors by constructing a bypass of Lviv and overhauling sections of the international highway M-05 Kyiv-Odesa.
The full-scale war has led to a redirection of traffic flows from seaports to land routes connecting Ukraine to the European Union. The road between Lviv and Rava-Ruska is the main route connecting Lviv to Warsaw and is part of the Trans-European Transport Network (TEN-T), which has seen a significant increase in traffic since the outbreak of the war. Improving the condition of the road and critically enhancing road safety on this route is an urgent need to improve transport links between Ukraine and the EU.