Building interaction between local executive authorities and local self-governments with international financial organizations (IFOs) on financing infrastructure development projects was topic of discussion at a meeting chaired by Minister of Infrastructure of Ukraine Vladyslav Kryklii on December 10, 2019. The meeting was attended by representatives of the European Bank for Reconstruction and Development (EBRD) Mark Magaletsky and Mykhailo Strelnikov and representatives of regional state administrations.
The Infrastructure Minister noted that the target of the Ministry is to expand the financing base for the reconstruction of Ukrainian roads: "In addition to funds of Road Fund for Road Infrastructure Development, we must use funds of the IFOs. Now an overriding task for the Ministry is to shape an algorithm for interaction between IFOs and local authorities. Such projects encompass not only profitable resources but also higher quality. It is not possible to divide roads into sections with length of 40 meters or to take other dubious actions. Local authorities need support and we are ready to provide it. We expect the first projects on local roads rehabilitation funded by the EBRD to be kicked off in 2020",the Minister underlined.
Deputy Minister of Infrastructure Natalia Forsyuk stressed that the next step will be to elaborate the regulatory framework needed to finance investment projects.The Deputy Minister also emphasized the need for coordination of cooperation between the Ministry of Infrastructure, Ukravtodor and regional state administrations in the sphere of road management.
A draft blueprint for attracting EBRD funds to finance road development at the local level was presented.
The attendees also touched upon the issues of distribution criteria and principles of involvement of local self-governments in participation in determining priorities of directing subsidies from the state budget to local budgets for financial support of construction, rehabilitation and maintenance of public roads as well as communal roads and streets in settlements.