Construction of the Shepit automobile border crossing point


Sector
Transport Sector
Stream
Development and expansion of border infrastructure with the countries of the European Union and the Republic of Moldova
Project Status
Preliminary Investment Feasibility Study
Entry into Portfolio
State level of SP
Investment Feasibility Study
Implementation
Completion

General information

Description of the project

The development of border infrastructure is crucial for the revitalization of border regions and the simplification of cross-border traffic. The availability of reliable transport and customs connections directly affects economic growth and regional stability. The opening and proper functioning of the Shepit checkpoint will provide an opportunity to lay the foundation for increasing trade, increasing the investment attractiveness of the region, developing tourism and improving the quality of life of local communities. 

The purpose of the project

Main Goal:

Increasing compliance with modern standards

Secondary Goal:

Improving the condition of infrastructure

Description of the purpose of the project and ways to achieve it

The aim of the project is to improve the optimization and modernization of transport flows in terms of infrastructure capacity, interoperability and efficiency of border crossing services at the Shepit road crossing point between Romania and Ukraine. In addition, the implementation of the project will positively impact the development of mountain communities that border the Shepit border crossing point.

Problems and solutions resulting from project implementation

The Shepit automobile checkpoint has not been carrying out customs clearance since 2010 due to Romania's accession to the Schengen area. The restrictions that arose in connection with Romania's accession to the Schengen area require the Shepit checkpoint infrastructure to meet current regulatory requirements. In addition, it is advisable to harmonize the checkpoint infrastructure with European Union standards. The new construction of the checkpoint will allow for the clearance of 50 vehicles and 150 people per day.

Socio-economic context

Indicator

Value

Capacity

50 vehicles

Strategic Case

Strategic feasibility of the project

Sector

Transport Sector

Subsector

Road Border Crossing Points

Stream

Development and expansion of border infrastructure with the countries of the European Union and the Republic of Moldova

Strategic document

Strategy for the Development and Expansion of Border Infrastructure with EU Countries and the Republic of Moldova until 2030

Task

Development and expansion of border road infrastructure, namely, state border crossing points for road traffic and access roads to them within controlled border areas

Project objectives

Indicator
Base value
Target value
Bandwidth
50 vehicles
50 vehicles

Project Sustainable Development Goals

Economic justification

Analysis of the project's impact on ecology and climate change

Does the planned activity have a potential positive contribution to achieving climate or environmental objectives?

Pollution prevention and control
[Response was provided in the Preliminary Investment Feasibility Study]
Climate change mitigation
[Response was provided in the Preliminary Investment Feasibility Study]

Is the proposed project expected to significantly harm any of the following climate or environmental objectives?

None of the options are applicable

Project sustainability and inclusivity

Identify potential gender risks of the project and indicate possible ways to overcome them:

None of the options are applicable

Does the project provide for improving women's access to services?

The project will improve women's access to education (primary, secondary, vocational)
[Response was provided in the Preliminary Investment Feasibility Study]
The project will create jobs available to women (temporarily or permanently)
[Response was provided in the Preliminary Investment Feasibility Study]
The project will improve women's access to safe water, food, and medical services
[Response was provided in the Preliminary Investment Feasibility Study]

Are civil society organizations representing women and vulnerable groups included in the consultation process?

No
[Response was provided in the Preliminary Investment Feasibility Study]

Alternative technical solutions

Technical Solution 1

New construction of the automobile checkpoint across the state border "Shepit"

Technical Solution 2

Major repairs of the Shepit state border checkpoint

Cost breakdownCost justificationCost justification
Project cost (preparation and implementation)288'400'000 UAH288'400'000 UAH
For preparation3'400'000 UAH3'400'000 UAH
For implementation285'000'000 UAH285'000'000 UAH
Project operation and closure cost102'150'000 UAH85'000'300 UAH
For operation102'000'000 UAH85'000'000 UAH
For closing150'000 UAH300 UAH
Average annual costs8'500'000 UAH8'500'000 UAH
Project duration, incl.36 months36 months
Deadline for developing a FFS12 months12 months
Implementation period24 months24 months
Service life144 months120 months
Target indicatorsDefined Defined
Technical Solution Status
Active

[The technical approach was selected for further detailed analysis or implementation.]

Rejected

[The technical approach was not selected for further detailed analysis or implementation.]

Commercial Justification

Supplier and contractor market assessment

Is the project likely to attract a sufficient number of bidders to ensure real competition that will encourage bidders to think innovatively and maximize the quality of their proposals?
Yes

[Response was provided in the Preliminary Investment Feasibility Study]

Is the project of interest to small and medium-sized enterprises?
Yes

[Response was provided in the Preliminary Investment Feasibility Study]

Will the project involve national or international suppliers and contractors?
Yes, only national

[Response was provided in the Preliminary Investment Feasibility Study]

Has an analysis of available procurement options been conducted for the technical solution?
No

[Response was provided in the Preliminary Investment Feasibility Study]

Financial justification

Total project budget

Total preliminary budget390'550'000 UAH373'400'300 UAH
Project cost (preparation and implementation)288'400'000 UAH288'400'000 UAH
For preparation3'400'000 UAH3'400'000 UAH
For implementation285'000'000 UAH285'000'000 UAH
Project operation and closure cost102'150'000 UAH85'000'300 UAH
For operation102'000'000 UAH85'000'000 UAH
For closing150'000 UAH300 UAH
Were the methodological recommendations approved by the Ministry of Finance of Ukraine applied when calculating the indicative budget?
No
[Response was provided in the Preliminary Investment Feasibility Study]

Average project cost per service recipient

Service UnitОдин отримувач послуги
Service Unit Cost416 UAH

Profitability of the project

Is the project expected to generate income?NoNo
Is the project self-sustaining?No

Availability of services

Has an analysis been conducted of the accessibility of services for consumers and their financial ability to pay the established tariffs?
No – analysis not performed

[Response was provided in the Preliminary Investment Feasibility Study]

Project Financing Mechanisms

Are funding sources and mechanisms identified?

Source and MechanismYesNo

Public-private partnership

Has a qualitative and quantitative assessment of the project's suitability for implementation through a PPP mechanism been conducted?
No, no assessment was conducted.

[Response was provided in the Preliminary Investment Feasibility Study]

Are there, after conducting an appropriate study, private investors interested in the possibility of implementing the project in the PPP format?
No

[Response was provided in the Preliminary Investment Feasibility Study]

Results of the feasibility analysis
Project Preparation Program Engagement and Funding Needs

Is there ongoing cooperation or support within the framework of international technical assistance (ITA) or from other donor or government agencies?

No
[Response was provided in the Preliminary Investment Feasibility Study]

Does the project require preparation assistance from Project Preparation Programs (PPF)?

Development of a full feasibility study;
[Response was provided in the Preliminary Investment Feasibility Study]
Development of design and estimate documentation (DED);
[Response was provided in the Preliminary Investment Feasibility Study]
Need for financing

Does the project require additional funding for preparation?

Yes
[Response was provided in the Preliminary Investment Feasibility Study]

Project Approval History

DateDecision NumberPortfolioProject StatusDecisionReasonsMaturity level
20/03/2026SP-N-200326-B8A9ECD6State SPPreliminary Investment Feasibility StudyInclude--