The IFC and World Bank are set to help Ukraine leverage private capital to rehabilitate its road infrastructure following study.
Prepared in partnership with the Global Infrastructure Facility, the study, which is called Ukraine National Roads Program -Options for Engaging the Private Sector in Road Upgrade, Maintenance and Operation, demonstrates how the PPP model can help address the country’s infrastructure issues – of which 90 percent of country’s roads are in poor condition.
The study has identified 21 potential PPP projects – with the first six pilot projects set to be finalised by 2023, with the IFC acting as lead transaction advisor on the procurement.
"The Road PPP Program serves as a bridge to ensure the private sector’s full participation in the construction, monetization, and maintenance of road infrastructure. In the medium term, the implementation of the program will attract more than $9 billion in private investment that can help rehabilitate and maintain more than 4,500 kilometers of state roads”, said Vladyslav Krykliy, the Minister of Infrastructure of Ukraine.
“Good roads are key to sustained social and economic development. In sync with the government’s efforts, IFC is well-positioned to help Ukraine transform the sector and attract international private investors,” said Jason Pellmar, IFC Regional Manager for Ukraine, Belarus and Moldova.