Ukraine set to undertake its first road PPPs

The government of Ukraine has signed advisory agreements on its first PPP (public private partnership) road projects.

The two road contracts – one in East Ukraine, one in West Ukraine – have a combined total value of more than €440 million.

These projects are being termed ‘pathfinder developments’ and are expected to lead to further PPPs across some 422km of proposed road projects.

The government is being assisted in its work on PPPs by the International Finance Corporation (IFC) and European Bank for Reconstruction and Development (EBRD).

According to EBRD estimates, the government’s portfolio of road developments could attract private investment of up to €8 billion.

The government says the initial projects are now being prepared for tender and a private sector partner will be chosen through an international competitive bidding process.

This partner – expected to be selected before the end of the year – will finance, operate and manage the project “in line with good international industry practice”.

The EBRD and IFC are also said to be examining the potential for PPP opportunities within the port, rail, energy and healthcare sectors, which could help drive economic growth in the Ukraine.