The European Bank for Reconstruction and Development has allocated a €267 million loan to repair the key M-06 highway connecting Kyiv to Ukraine's western border. Writes UNN with reference to the State Agency for Reconstruction.
The EBRD has disbursed a EUR 267 million loan to the State Agency for Infrastructure Reconstruction and Development of Ukraine to repair a strategic highway connecting Kyiv to the country's western border.
These funds, reassigned from the existing sovereign loan, will be used to repair certain sections of the M-06 highway leading to Slovakia and Hungary. A second tranche of EUR 160 million is also envisaged. The project includes improving road safety and reducing climate impact. The works are planned in Kyiv, Rivne and Zhytomyr regions.
A €450 million loan allocated in 2020 to improve roads between Kyiv and the port of Odesa was redirected due to a shift in priorities caused by the war. Increased traffic volumes on western routes to the EU have necessitated urgent repairs.
In 2023, the first tranche of this loan was used to rehabilitate the M-09 road from Lviv to Rava-Ruska on the Polish border. Both roads are part of the Trans-European Transport Network (TEN-T), which has faced a significant increase in traffic since the outbreak of the war.
“The war has dealt a huge blow to Ukraine's transportation system, including the blockade of seaports, airspace closures, restrictions on rail capacity and ongoing attacks on key infrastructure. It is vital to ensure the functioning of the main roads that support Ukraine's economy and its logistics chains,” said Nandita Parshad, Managing Director of the EBRD's Sustainable Infrastructure Group.
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