Ukravtodor strikes deals with Chinese company to repair two highways

Ukravtodor CEO Slawomir Nowak and Chairman of the Board of Xinjiang Communications Construction Group Co., Ltd., Shin Jinsheng signed the relevant memorandum on October 10.

"We have signed a contract to complete the work on the M-03 road in connection with the breach of contract with Italy's Todini. I hope that the presence of Chinese partners in the Ukrainian market will be a success. Xinjiang is responsible not only for its own reputation, but for reputation of all Chinese companies," Nowak told a briefing.

According to the provided materials, the contract amounts to  US$57.298 million. The repairs are expected to begin in early 2018 and completed within eight months plus the defects liability period of 24 months.

The contract was signed within the Second Roads and Safety Improvement Project (RSIP) between Ukraine and the International Bank for Reconstruction and Development (IBRD).

Shin Jinsheng, in turn, expressed satisfaction with the signed contract, as Xinjiang had experience of road construction in China, Mongolia, Kazakhstan, South Sudan, Cameroon, and Tajikistan, using the most advanced technologies. He also assured that the company would carry out work at the highest level, with involvement of the best professionals.

Read alsoGov't mulls speed limit cut to 50 km/h within settlements across UkraineUkravtodor also signed the second contract with Xinjiang that provides for the improvement of traffic safety on the M-12 highway Stryi-Ternopil-Kirohograd-Znamianka (via Vinnytsia).

"This is the first contract that Ukravtodor signed with the Chinese company, which provides for repairs on the M-12 road in Khmelnytsky region," Nowak said.

The contract price is $38.485 million. The repairs are expected to be launched at the beginning of 2018.

Performance time is 18 months plus defects liability period of 12 months.

It was also signed within the Second Roads and Safety Improvement Project between Ukraine and the IBRD.

Read alsoOdesa-Gdansk highway to connect Baltic, Black seasAs UNIAN reported earlier, UAH 2 billion ($75.2 million) would be allocated for capital repairs of the M-03 highway Kyiv-Kharkiv-Dovzhansky from the 2018 state budget of Ukraine.

In August 2016, Ukravtodor broke its contract with Italy's Todini Costruzioni Generali S.p.a. for the overhaul and renovation of the Lubny-Poltava stretch of the M-03 highway between Kyiv, Kharkiv and Dovzhansky.

The Ukrainian side said the Italian contractor had not performed any activity at the road construction site for over nine months and had attempted to recover compensation from Ukravtodor on "absolutely groundless claims." As a result, the Italian company failed to meet the project's deadlines.

In early October 2015, the Ukrainian Infrastructure Ministry signed a protocol on receiving from the World Bank a loan of $560 million for the reconstruction of the Poltava-Kharkiv stretch of highway between Kyiv, Kharkiv and Dovzhansky.

Read alsoApple Maps app now shows traffic jams on Ukraine’s roads - Kyiv PostThe received funds are envisaged for the modernization of the Poltava-Valky section of the M-03 highway between Kyiv, Kharkiv and Dovzhansky, improvement of traffic safety on the country's major highways, and implementation of Output and Performance-Based Road Contracts (OPRC) on the highways M-03 Kyiv-Kharkiv-Dovzhansky (Kyiv-Boryspil section), M-06 Kyiv-Chop (Kyiv-Brody section), and M-07 Kyiv-Kovel-Yahodyn.

In addition, the funds are to be channeled for consulting services related to an automatic weighing system for freight transport and the charging of carriers on Ukrainian highways.