Oleksii Kuleba signs USD 432 million agreement to restore roads and transport in Ukraine

Oleksii Kuleba, Deputy Prime Minister for Restoration of Ukraine and Minister for Communities and Territories Development, and Bob Saum, World Bank Regional Country Director for Eastern Europe, signed a financing agreement for the new Delivering Resilient Infrastructure in Vulnerable Environments (DRIVE) Project. As a result, Ukraine will receive the first tranche under the project this month.

In total, the project is expected to raise USD 432 million in funding.

The main goal of DRIVE is to restore transport infrastructure. It includes major repairs of roads and bridges in 19 regions of Ukraine, reform of national highways, installation of modular bridges, as well as technical assistance and project management.

“The implementation of the DRIVE project will help ensure the smooth operation of logistics, modernise transport infrastructure and develop key transit routes. This will contribute to the recovery of Ukraine and its integration into the European transport system.

This funding is essential for road maintenance and repair. In times of war, logistics saves lives, and a functional road infrastructure is critical to the country’s stability. That is why we are doing everything possible to attract additional resources.

I would especially like to thank the World Bank for its financial support. This assistance is extremely valuable, especially in times of war and limited funding,” said Oleksii Kuleba.

More details about the main 3 areas of the project:

• Support for the national road network – USD 270.48 million, which will be used to repair roads and bridges, maintain them, carry out capital works, support design and supervise construction. Another USD 90 million will be spent on reforming the roads and transport sector.
• USD 39 million will be used to install emergency modular road bridges and climate-smart preservation of key links in the road network.
• Technical assistance and project management – USD 10 million.

DRIVE will be implemented by the State Agency for Restoration and Infrastructure Development of Ukraine. The project is expected to be completed in 2025-2028.

The project is part of the Single Project Pipeline and is aimed at rebuilding critical transport infrastructure.

At the end of last week, the World Bank’s Board of Directors approved the Delivering Resilient Infrastructure in Vulnerable Environments (DRIVE) project. This led to today’s signing of the agreement. Part of the financing includes USD 212 million from the IBRD, with support from the Government of Japan, and USD 10 million from the Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund.

Background

DRIVE complements the Repairing Essential Logistics Infrastructure and Network Connectivity (RELINC) project, which delivered modular road bridges and manufactured 200 platform wagons to increase Ukrzaliznytsia’s freight traffic and export potential.