EBRD to provide loans for road construction in Ukraine

The European Bank for Reconstruction and Development (EBRD) will provide loans to Ukraine to finance regional-level road infrastructure.

That's according to a report by the Ministry of Finance citing Deputy Minister Oleksandr Kava as saying.

Read alsoUkraine, Italy to develop high-speed rail lines – infrastructure ministry"One of the promising areas of cooperation between Ukraine and the EBRD are loans to finance road infrastructure at the regional level. I'm glad that the work that started two years ago is now bearing fruit: projects in this area are being prepared and the necessary legislative and regulatory conditions will be created for such support," the press service of the Ministry of Finance quotes Kava.

It's noted that pilot projects will launch next year in Kherson and Dnipropetrovsk regions.

"In particular, the EBRD will provide a EUR 25 million loan for the construction of a bridge over the railway to connect two districts of the city of Kherson, and EUR 40 million for the reconstruction of sections of two regional highways with a total length of 95.3 km in Dnipropetrovsk region," the report says.

EBRD in Ukraine

The EBRD is the largest international financial investor in Ukraine. Since the beginning of its activities in Ukraine in 1993, the bank has allocated more than EUR 14.54 billion in total for over 460 projects.

Read alsoFinance Ministry reports on spending from COVID-19 Relief FundThe European Bank for Reconstruction and Development in 2019 invested more than EUR 1.1 billion in 51 projects in Ukraine's public and private sector.

EBRD outlook

• On October 1, 2020, the EBRD downgraded its outlook for Ukraine's GDP fall in 2020 to 5.5% from 4.5% projected in May this year.
• In May, the Bank predicted a fall in Ukraine's GDP in 2020 by 4.5%, followed by a 5% growth in 2021.