EBRD sanctions €190m tranche to Ukraine’s road agency Ukravtodor

The European Bank for Reconstruction and Development (EBRD) said that its board of directors has sanctioned a new €190 million loan tranche for Ukravtodor, the Ukrainian state road agency, to further enhance the road infrastructure in Ukraine.

The new loan tranche is part of a €450 million package. It will be used for upgrading sections of the M-05 Kyiv-Odesa road in the Kirovohrad, Odesa, and Mykolaiv regions.

According to the EBRD, the approval of the new tranche comes after efforts by Ukravtodor to look into its governance systems, with a plan to advancing reforms. These are said to include a comprehensive anti-corruption action plan prepared by independent experts, which was sanctioned by a steering group made up of government representatives, the President’s office, the EBRD, and Ukravtodor.

EBRD sanctions €190m tranche to Ukraine’s road agency Ukravtodor. Photo courtesy of European Bank for Reconstruction and Development.

EBRD stated: “Ukravtodor’s effort to fight corruption in road building is the pilot programme under the memorandum of understanding signed in October 2020 between the government of Ukraine and the EBRD to strengthen corporate governance in the state sector.

“It is seen as a litmus test for a broader anti-corruption and good governance programme backed by the EBRD and targeting Ukrainian state-owned enterprises and public-sector entities.”

EBRD said that Ukravtodor has also prepared an e-mobility action plan to support electric-vehicle deployment in Ukraine and is forming a road safety department.