Ukraine will receive EUR 450 million from the EIB for the overhaul of the M-05 Kyiv-Odesa road and the construction of the Northern Bypass of Lviv

On August 25, 2020 the Parliament supported the draft Law of Ukraine on Ratification of the Financial Agreement «European Roads of Ukraine III» between Ukraine and the European Investment Bank, which provides for a loan of  EUR 450 million to Ukraine. 

«The project envisages improving the transport and operational condition of roads along the routes of international transport corridors: an overhaul of 314 kilometers of the M-05 Kyiv-Odesa highway in Cherkasy, Kirovohrad, Mykolaiv and Odesa regions and completion of construction of transport interchanges on this road. This will increase road safety on this highway of international importance. It is also planned to build the Northern Bypass of Lviv, with a total length of 22.5 kilometers, which will free the city from transit traffic and significantly reduce the duration of the trip to the checkpoints on the Ukrainian-Polish border», - remarked Deputy Minister of Finance of Ukraine Oleksandr Kava.

Funds from the EIB will be provided on financial terms:
•    the minimum amount of one tranche is EUR 20 million; the number of tranches is 20;
•    the total loan repayment period is 25 years, including the grace period of 5 years;
•    interest rate is the following: Euribor + spread, which will be determined separately for each tranche.