ROADS IN

1 ROADS IN UKRAINE

SECTOR INFORMATION Ukravtodor’s annual spending on road maintenance from State Budget (UAH bn) Note: does not include transfers to regional budgets for communal roads.  Ukraine has significant potential for motorway development due to its location on the intersection of multiple transport corridors, namely Berlin ()-Wroclaw--; Trieste- Ljubljana- (Bratislava)-Lviv; and -St. Petersburg (Moscow)-Kyiv- Chisinau (Odesa)--Dimitrovgrad- Alexandropoulos.

 The existing road network in Ukraine requires substantial modernization. The total length of domestic roads remained unchanged over the last 15 years at 169,600 km, with 30% classified as roads of state importance. Such roads have a higher standard rate of expenditure for road maintenance of UAH $2,700/km vs. $1,200/km for regional roads, largely because of Ukraine road network in 2014 ths.km intensive freight transport.

 In 2013, road transportation had a 74% share of total freight transportation in Ukraine in tonnage terms. On average, a ton of freight was transported to a distance of 47 km in 2013, versus 21 km in 2000.

In Ukraine, road construction and repairs are managed by Ukravtodor, a state agency subordinate to the Cabinet of Ministers through the Ministry of Infrastructure.

Source: Ukravtodor

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ROADS: KEY INVESTMENT PROJECTS

KEY ROAD SECTIONS FOR REHABILITATION (SEE MAP)

 Lviv – Krakovets (85 km, 1 cat),  Odesa – Mykolaiv – Kherson (190 km, 1 cat),  Dubno – Ternopil – Ivano-Frankivsk (220 km, cat 1),  Rivne – Lutsk (65 km, cat 1),  (140 km, 1 cat),  Zhytomyr – Vinnytsya (120 km, cat 1),  Odesa – Palanki – Monashi (84 km, cat 2),  Terebovlya – Chernivtsi (138 km, 2 cat). INVESTMENT PROJECT

 Rehabilitation of key road sections which are part of the international corridors or comprise bottlenecks to the existing Required level of infrastructure. $4,5bn  Over 900 km is to be rehabilitated with the size of investment investments around $4.3bn. 4 years Timeline EXPECTED RESULTS 925km Total length The realization of these projects will boost the economy of Ukraine.  Improve quality of roads based on the international standards.  Decrease transportation risks, provide safer road infrastructure.  Decrease ‘death on roads ratio’ to the EU level.

3 LVIV-KRAKOVETS ROAD CONSTRUCTION PROJECT

The road will connect Lviv with the existing M-10 road to the State border with Poland by 2015.

• Existing traffic flow - 8,400 cars/day. • Road length - 84.4 km. • Road category - 1-А. • Number of lanes - 4. • Lane width - 3.75 m. Krakovets • Width of sub grade - 27.5 m. Lviv • Road shoulder width - 3.75 m. • Area of land allocation - 570 hectares. 84,4 km • Estimated construction speed - 120 KM/year. • Intended potential traffic flow - 14-18,000 vehicles/day.

PROJECT REALIZATION

 The concessionary is Ukravtodor, the State Road Agency of Ukraine, which falls under the authority of the Ministry of Required level of Infrastructure of Ukraine. $244m  Ukravtodor will provide the land necessary for investments construction of the new highway. 4 years Timeline INVESTMENT OPPORTUNITIES 84,4km Total length  Concession agreement of construction of road Lviv- Krakovets. Construction of first toll road in Ukraine.

4 PROJECT OF THE CONSTRUCTION AROUND KYIV

Traffic growth in Kiev of 15% annually stimulates the construction of new roads and bridges.

• Length: overall – 214.6 km (new direction – 148.4 km, existing road – 66.2 km) • Category: 1A • Lane: 4 • Width: 3.75 m • Bridges across the river: • North crossing 8200 m • South crossing 4823 m • Bridge across the Desna river - 1505 m • Overpass: 7 pcs., 8910 m • Pipelines: 78 pcs. • Interchange of two levels: 35 pcs. • Land allocation: 1415 ha • Earthwork volume: 21 840 thousand m3 • Pavement area: 3.6 million m2

PROJECT REALIZATION 4 years Timeline

 Will unload city of Kiev from freight transit transport. 151,6km Total length  Realization of the project will develop infrastructure of Kyiv region. 3 Large bridges  Strengthen the role of Ukraine as a transit country by unification of 3 international and 4 national transport 78 Small bridges corridors.  Improve roads safety.

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