World Bank and Ukravtodor Sign Loan Agreement to Launch New Road Project
October 11, 2012
Kyiv, October 11, 2012 - The Loan Agreement for the Second Road and Safety Improvement Project (RSIP2) in Ukraine was signed today by Qimiao Fan, World Bank Director for Ukraine, Belarus and Moldova and Volodymyr Demishkan, Head of Ukravtodor, the State Road Agency of Ukraine.
The World Bank’s Board of Executive Directors approved a US$ 450 million loan for the RSIP2 on September 20, 2012. The project will improve the condition and quality of sections of the Kyiv-Kharkiv road between the cities of Lubny and Poltava and enhance road safety along several road corridors in Ukraine.
“The project will lead to the reduction of cost and time spent on moving people and goods on this key road artery of country,” said Qimiao Fan, World Bank Director for Ukraine, Belarus and Moldova. “It will also contribute to improved road safety on selected road corridors and decrease the number of road accidents. The project will bring significant positive social and economic benefits to local communities by creating more economic activities and jobs.”
The Second Road and Safety Improvement Project will be implemented by Ukravtodor. The primary beneficiaries of the project are Ukraine’s road users and the local communities along the road. The RSIP2 is a follow-up project to the ongoing Roads and Safety Improvement Project (RSIP1) which the World Bank supports through a loan of US$ 400 million which was approved by the World Bank’s Board in 2009. Implementation of RSIP1 has been progressing well and has brought better road conditions and road safety of the Kyiv-Kharkiv road between the cities of Boryspil and Lubny.
The new project will also help Ukraine to make its roads safer in the context of United Nations Decade for Road Safety. The project will apply safe road engineering measures such as intersection improvements, road markings, and pedestrian facilities. “We look forward to the timely and successful implementation of the new road project so as to bring tangible benefits to the ordinary citizens of Ukraine quickly”, Mr. Fan said.
The project is fully consistent with the new Country Partnership Strategy for Ukraine for the period 2012-2016. Since Ukraine joined the World Bank in 1992, commitments to the country total over US$ 7.5 billion for 41 operations.