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World Bank Document Report No. 18636-UA Republicof Ukraine TransportSector Review Public Disclosure Authorized (In ThreeVolumes) Volume III: Annexes and StatisticalAppendix November 30, 1998 Infrastructure Unit ExpertiseServices Europe and Central Asia DGI Worlcl Bank EuropeanComnmission Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Document of the World Bank CURRENCYUNITS and EQUIVALENTS US$1 = Hrv 2.0 lHrv = 100Kopeck US$1 = USc 100 WEIGHTS,MEASURES and OTHERUNITS Bln Billion Inh Inhabitant Kg Kilogram Km Kilometer Mln Million Pass Passenger pkm passenger kilometer sq kIn, km2 Squarekilometer T Ton (meteric, 1,000 kg) Th Thousand tkm ton kilometer Toe Ton oil equivalent Vpd Vehicles per day CONVERSIONFACTORS 1 mile = 1.609 meters 1 kg= 2.205 lbs 1 US gallon = 3.785 liters 1 sq km = 0.386square miles CHEMICAL COMPOUNDS C.Hy, HC Hydrocarbons CO CarbonMonoxide CO2 CarbonDioxide NO. NitrogenOxides SO2 Sulfur Dioxide FISCALYEAR January 1 - December 31 Vice President: Johannes Linn, ECAVP Country Director: Paul Siegelbaum, ECC 1I Infrastructure Director Ricardo Halperin, ECS1N Sector Leader Eva Molnar, ECSIN Task Team Leader: Pedro Taborga,ECSIN GLOSSARYOF ACRONYMS AND ABBREVIATIONS ADW Ave. Dead Weight ATC Air Traffic Control CAA Civil Aviation Administration CIF Cost-Insurance-Freight CIS Commonwealth of Independent States CMEA Council for Mutual Economic Assistance COTIF Bern Convention of May 9, 1980 EBRD European Bank for Reconstruction and Development ECAC European Civil Aviation Conference EDI Electronic Data Interchanges EIA EnvironmentalImpact Assessment EU European Union FIATA Federation Internationale des Associations des Transitaires et Assimiles FOB Free-On-Board FSU Former Soviet Union GATT General Agreement on Tariffs and Trade GDI Gross Domestic Investment GDP Gross Domestic Product GNP Gross National Product IATA International Air Transport Association ICAO International Civil Aviation Organization IMF International Monetary Fund IRI International Roughness Index MOT Ministry of Transport OECD Organization for Economic Cooperation and Development PA Per Annum PIP Public Investment Plan SAC Structural Adjustment Credit SMGS USSR Rail Waybill SOE State Organizations and Enterprises TACIS Technical Assistance for Commonwealth of Independent States TIR International Road Transport UZ Ukrzaliznytsia (Railway Administration) VAT Value Added Tax WTO World Trade Organization U ACKNOWLEDGEMENTS The Review is based on findings of a World Bank mission, which visited Ukraine in May/June1998, and a TransportPolicy Workshop which followedit on June 29 - July 3, 1998. The members of the mission were P. N. Taborga (mission leader); Robert Bonney (Highway Specialist); Jean-Paul Desgranges (Aviation Specialist); Jan-Coen van Elbuwg (Environment Specialist); Parbo Juchnewitsch(Railway Reform Specialist); Rene Meeuws (ContainerizationSpecialist); Philippe de Naurois (Senior Financial Analyst); Gerald Ollivier (FinancialAnalyst); Ovadia Salama (Transportand Trade Facilitation);Olev Schults (Railway Specialist); Carlos Silva anstitutional Reform Expert); and Eugene Vemnigora(Maritime and River Specialist). The Ministry of Transport and the Ukrainian National Agency for Development and Investment were the main counterparts of the mission on the Ukrainian side. The study has relied heavily on official sources of information and statistics as well as interviews and meetings with Government ministries and agencies. It also draws on on-going World Bank and IMF work on the macro-economic conditions of the country, other sector work, studies supported by EU, EU- TACIS and EBRD, cross country comparisons and other sectors benchmarks. The mission gratefullyacknowledges the suggestionsreceived from Ms. Jann Mastersonand Mr. Mark Davis, and the final updatingof the reportby Ms. ShobhaSubramanian. Major sources of qualitative information were also obtained from the commercial services of France, the United Kingdom and the United States (Business Information Services for the NIS), located in Ukraine. The mission wishes to thank the EU - Expertise Service for its support, which financed consultant time, travel and subsistence, and some of the administrative costs of this work Without this support, the work presented in this report would have not been possible. UKRAINE TRANSPORT SECTOR REVIEW Table of Contents 3 TRANSPORTSECTOR: ISSUES AND STRATEGY 3 1 Accounting and Financial Management Information Systems 4 TRANSPORTDEMAND AND FUTURE SCENARIOS 4 1 ContainerGrowth Potential 4 2 DetailedScenarii by Sub-sector 5 THE NEW ROLE OF THE GOVERNMENT 5 1 AdvisoryUnit Functions 6 TRANSPORTAND TRADEFACLUTATION 6 1 Customs,Border Crossing and Documentation 6 2 Infrastructureand ServiceQuality Barriers 6 3 MultimodalTransport Measures 6 4 CorrectiveMeasures and RelatedCosts for Modal Inefficiencies 6 5 Securityand InsuranceIssues 7 ROADINFRASTRUCTURE SECTOR 7 1 RoadInfrastructure-Cost Recovery Analysis 7 2 1 ForecastedStatistics 7 2 2 ProformaSources & Uses of Funds 7 2 3 MainFinancial Indicators (Graph) 7 2 1 ForecastedStatistics 7 2 2 ProformaSources & Uses of Funds 7 2 3 Main FinancialIndicators (Graph) 8 RAILWAYS 8 1 UZ OrganizationChart 8 2 UZ Assets 8 3 UZ TrafficLevels and Importancein the Economy 8 4 RegionalRailways' Description 8 5 FinancialPerformances and Issues 8 1 1 RailwaySystem-Map 8 1 2 RailwayCorridor Map 8 1 3 TrafficAnalysis (Railways Historical Data) 8 1 4 Graph: IndexedTraffic (Trends Base 100=1990) 8 1 6 RegionalRailways Traffic and FinancialHighlights 1996 8 1 7 FinancialHighlights 8 1 8 1997-Balance Sheet-Railways 8 2 1 Traffic Estimates 8 2 2 Forecasted Statistics 8 2 3 ProForma Income Statements 8 2 4 Proforma Sources & Uses of Funds 8 2 5 ProForma Balance Sheets 8 2 6 ProForma Ratio Analysis 8 2 7 Main Financial Indicators (Graph) 8 2 1 Traffic Estimtes 8 2 2 Forecasted Statistics 8 2 3 ProForma Income Statements 8 2 4 Proforma Sources & Uses of Funds 8 2 5 ProForma Balance Sheets 8 2 6 ProForma Ratio Analysis 8 2 7 Main Financial Indicators (Graph) 8 2 8 Gross Operating Result (Graph) 8 2 9 Investment Financing Capacity (Graph) 9 SEA PORTS 9 1 The Main Seaports of Ukraine 9 2 Maritime Environment under FSU 9 1 1 Historical traffic per port- Export 9 1 2 Historical traffic per port- Import 9 1 3 Historical traffic per port- Transit 9 1 4 Historical traffic per port- Total 9 1 5 Traffic Analysis 9 1 6 Indexed Traffic (Trends Base 100=1990) 9 1 7 Total Sea Ports Traffic 1997 (Graph) 9 1 8 Financial Analysis Odessa-Ilyichevsk 1997 9 2 1 Traffic Statistics 9 2 2 Forecasted Statistics 9 2 3 ProForna Income Statements 9 2 4 Proforma Sources & Uses of Funds 9 2 5 ProForma Balance Sheets 9 2 6 ProForma Ratio Analysis 9 2 7 Main Financial Indicators (Graph) 9 21 Traffic Estimates 9 2 2 Forecasted Statistics 9 2 3 ProForma Income Statements 9 2 4 Proforma Sources & Uses of Funds 9 2 5 ProForma Balance Sheets 9 2 6 ProForma Ratio Analysis 9 2 7 Main Financial Indicators (Graph) 9 2 8 Gross Operating Result (Graph) 9 2 9 Investment Financing Capacity (Graph) 10 CIVILAVIATION 10 1 Air Ukraine 10 2 Condition of Main Airports 10 3 Technical Assistance Program 10 11 Main Ukrainian Airlines 10 1 2 Main Ukrainian Airlines-Freight Traffic 10 1 3 Main Ukrainian Airlines-PassengerTraffic 10 1 4 Ukrainian Airports-Passenger Traffic 10 1 5 Ukrainian Airports-Traffic Analysis and Graphs 10 1 6 Airports-Financial Comparisons- 1995 10 1 7 Borispol International Airport- Financial Highlights: 1996-1997 10 1 8 Borispol International Airport- Income Statements and Cash Flow: 1996-1997 10 2 2 Forecasted Statistics 10 2 3 ProForma Income Statements 10 2 4 ProFomna Sources & Uses of Funds 10 2 5 ProForma Balance Sheets 10 2 6 ProForma Ration Analysis 10 2 7 Main Financial Indicators (Graph) 10 2 2 Forecasted Statistics 10 2 3 ProForma Income Statements 10 2 4 ProForma Sources & Uses of Funds 10 2 5 ProForma Balance Sheets 10 2 6 ProForma Ratio Analysis 10 2 7 'Main Financial Indicators (Graph) 10 2 8 Gross Operating Result (Graph) 10 2 9 Investment Financing Capacity (Graph) 12 TRANSPORT SECTOR 12 1 1 Traffic Estimates-All Scenarios 12 1 2 Public Surplus in Transport Sector-All Scenarios 12 1 3 Trade Facilitation Expected Gross Economic Benefits- All Scenarios 1r t a 12 221 Traffic Estimates all Modes 12 2 2 Traffic Estimates all Modes- Graphs 12 2 3 Gross operating Results 12 2 1 Traffic Estimates all Modes 12 2 2 Traffic Estimates all Modes-Graphs 12 2 3 Gross operating Results 1Tf 2 EsImateallMod 12 2 1 Traffic Estimates all Modes 12 2 2 Traffic Estimates all Modes- Graphs 12 2 3 Gross Operating Results Annex 3.1 Annex 3.1. Accounting and Financial Management Information Systems 1. An adequate accounting and financial management framework for the transport sector has become an essential factor. It will support the sector to: (i) achieve good management performance; (ii) deliver efficient and financially sustainable transport services; (iii) mobilize resources and sustain operations in a market economy; and (iv) introduce private investment resources in the sector. Key aspects of an acceptable accounting and financial management framework for the sector, should be, as a minimum, the following: 2. Generalize Generally Accepted Accounting Principles (GAAP) or equivalent in the Sector. In 1997, Ukraine adopted the accrual basis principle. The transport sector should take the lead in generalizing professionally at least the other main principles such as continuity of operation (going concern assumption) or permanence of accounting methodologies
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