The European Investment Bank (EIB) is lending EUR 200 million to Ukraine for the rehabilitation of the M-06 road, which is the major route between Ukraine and the European Union, linking the Ukrainian capital to the neighbouring EU Member States of Hungary, Slovakia and Poland. This is the first-ever operation of the EIB in Ukraine.
The loan was signed earlier today by Ukraine’s Deputy Prime Minister AZAROV and EIB Vice-President KOLLATZ-AHNEN.
The promoter of the project is Ukravtodor, the State Road Service of Ukraine. The project will contribute to eliminating bottlenecks on the M-06 road and improve the quality and security of the existing infrastructure. The M-06 road is part of the Pan-European Corridor III connecting Eastern European countries with the EU’s TEN (Trans-European Network) whose completion is a priority objective of the European Union.
Commenting on this first EIB operation in Ukraine, Vice-President Kollatz-Ahnen stressed that it was “an excellent example of EIB financing with a direct impact in terms of closer connectivity, harmonisation and integration between the enlarged EU and its Eastern Neighbours, aimed at building an area of prosperity, stability and security, which is the ultimate goal of the European Neighbourhood Policy”.
This operation is also an example of efficient cooperation between the EIB and the EBRD (European Bank for Reconstruction and Development), which is co-financing this project with a loan of an equal amount.
Background information
The financing of projects contributing to the “European Trans-European Networks” (TENs within the EU) as well as to the development and upgrading of the “Trans-European Transport Corridors” is one of the EIB's lending priorities. The individual corridors constituting the trans-European transport network were officially defined at the pan-European Transport Conferences (in 1994 and 1997). This network plays a crucial role in ensuring the free movement of goods – it carries almost half of all freight and passenger traffic. Transport corridors in the new Member States were identified in cooperation with the European Commission according to the transport needs of the countries concerned. The EIB has lent close to EUR 87 billion over the last five years to support investment in the TENs and other major transport networks.
The European Investment Bank, the Bank promoting EU objectives, supports investments furthering EU integration within the framework of six EU priorities: cohesion and convergence; support for SMEs; environmental sustainability; research, development and innovation; Trans-European Networks; and sustainable, competitive and secure energy. It also operates outside the EU within the framework of the EU's external policies for cooperation and development. Owned by EU’s 27 Member States, the EIB raises its funds on the capital markets (AAA-rated issuer). In 2006, it borrowed EUR 48 billion and lent a total of EUR 45.8 billion.