EBRD provides €267 million to develop key Ukrainian road to EU
The European Bank for Reconstruction and Development (EBRD) is reallocating part of its existing sovereign loan to the State Agency for Restoration and Development of Infrastructure of Ukraine.
With the total €267 million reallocated, the EBRD will fund emergency repairs on sections of the M-06 road heading west from Kyiv towards the Slovak and Hungarian borders, and commit the loan’s second tranche of €160 million.
The road repairs will enhance existing transport links between Ukraine and its EU neighbours, as well as within Ukraine, and reduce the logistical costs of freight traffic. The project also incorporates new road safety and climate mitigation measures. Work will be on road sections in Kyiv, Rivne, and Zhytomyr regions.
The 2020 loan for €450 million was originally intended to finance improvements to the road from Kyiv to the southern port of Odesa. But Russia’s war on Ukraine has prompted a re-assessment of priorities following the redirection of cargo and passenger flows via land routes connecting Ukraine to the EU, over the country’s western border, in line with the Solidarity Lanes initiative.
In 2023, the Bank reallocated the first tranche of the loan towards a new project component involving the rehabilitation of the M-09 road section between Lviv and Rava-Ruska, on the Polish border.
Both roads are part of the Trans-European Transport Network (TEN-T).
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