Creation of a national road toll system in Ukraine


Sector
Transport Sector
Stream
Introduction of tolls on public roads of state importance
Maturity level
63
Project Status
Preliminary Investment Feasibility Study
Entry into Portfolio
State level of SPP
Investment Feasibility Study
Implementation
Completion

General information

Description of the project

The Association Agreement between Ukraine and the EU provides for the adaptation of Ukrainian regulatory legal acts to EU acts, in particular Directive 1999/62/EC of 17.06.1999 on the charging of heavy goods vehicles for the use of certain infrastructures.

The purpose of Directive 1999/62/EC is to eliminate obstacles to competition between transport enterprises of the Member States, harmonize tax collection systems and establish mechanisms for collecting fees from truck owners.

The purpose of the Project is to create  National system of toll collection for the use of public roads of state importance by freight vehicles.

The project will increase revenues to the state road fund, which in turn will increase expenditures for operational maintenance of public roads of state importance, bringing them into proper  transport and operational condition, and will also provide financing for new construction, reconstruction and repair of public roads.

This will lead not only to increased sustainability, but also to a better level of service, reduced travel time and delays, increased traffic safety, and reduced vehicle operating costs.

This project solves the problem of stable financing of road maintenance, in particular, through a fee that will be paid for the use of public roads of state importance by freight vehicles, the use of which leads to a reduction in the service life of highways, especially during periods of elevated air temperatures, and causes more environmental pollution compared to passenger cars cars. 

The purpose of the project

Main Goal:

Improving the condition of infrastructure

Secondary Goal:

Improving the quality of services

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

The purpose of the Project is to create a National System of Toll Collection for the Use of Public Roads of State Importance by Freight Vehicles. The Project will increase revenues to the State Road Fund. This project solves the problem of stable financing of road maintenance. The Project will provide financing for the operational maintenance of public roads classified as toll roads and bring them into proper transport and operational condition. The expected amount of revenue from toll road tolls is 7-8 billion hryvnias annually; The “user pays” principle is also being introduced, which will allow toll collection, primarily, from vehicles that cause greater destructive impact on the road surface of public roads, pollute the environment, and create noise pollution. The Project will contribute to the renewal of the fleet of motor carriers in order to expand the use of vehicles that do not emit greenhouse gases.

Problems and solutions resulting from project implementation

The transport and operational condition of public roads is deteriorating due to the lack of annual funding at the level of the minimum need, calculated in accordance with the Methodology for Determining the Amount of Financing for the Construction, Reconstruction, Repair and Maintenance of Roads, approved by Order No. 573/1019 of the Ministry of Infrastructure and the Ministry of Finance of September 21, 2012.

Socio-economic context

Indicator

Value

Number of people who will use the service

318480 vehicles

Strategic Case

Strategic feasibility of the project

Sector

Transport Sector

Subsector

Road transport and road infrastructure

Stream

Introduction of tolls on public roads of state importance

Strategic document

National Transport Strategy of Ukraine until 2030

Task

1 Implementation of an electronic toll collection system for freight transport and the use of transport infrastructure

Project objectives

Project objectives were not specified by the initiator

Project Sustainable Development Goals

Demand for the service and its dynamics

What methodology was used to estimate demand?

21.06.2023 у Лондоні підписано Меморандум про порозуміння між Мініс-терством розвитку громад, територій та інфраструктури України та Державним агентством відновлення та розвитку інфраструктури України та Міжнародною фінансовою корпорацією (далі – МФК) щодо реалізації проєкту Національної системи збору плати за проїзд автомобільними дорогами загального користування державного значення. Залучено експертів: юридичного радника, технічного радника.
[Response was provided in the Preliminary Investment Feasibility Study]

Has data from external sources been used in the demand assessment?

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

Does the demand forecast take into account the latest demographic and economic forecasts?

No
[Response was provided in the Preliminary Investment Feasibility Study]
Indicator
Year
Demand
Annual demand for services/infrastructure
1
0 km
Annual demand for services/infrastructure
2
3112 km
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]

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?

None of the options are applicable

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

Creation of a national road toll system in Ukraine

Technical Solution 2

Maintaining the current state

Cost breakdownCost justificationCost justification
Project cost (preparation and implementation)6'300'000'000 UAH0 UAH
For implementation6'300'000'000 UAH0 UAH
Project operation and closure cost1'000'000'000 UAH0 UAH
For operation1'000'000'000 UAH0 UAH
Average annual costs1'000'000'000 UAH0 UAH
Project duration, incl.36 months2 months
Deadline for developing a FFS12 months1 month
Implementation period24 months1 month
Service life300 months1 month
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?
No

[Response was provided in the Preliminary Investment Feasibility Study]

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

[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 budget7'300'000'000 UAH0 UAH
Project cost (preparation and implementation)6'300'000'000 UAH0 UAH
For preparation0 UAH0 UAH
For implementation6'300'000'000 UAH0 UAH
Project operation and closure cost1'000'000'000 UAH0 UAH
For operation1'000'000'000 UAH0 UAH
For closing0 UAH0 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 UnitКількість отримувачів
Service Unit Cost1 UAH

Profitability of the project

Is the project expected to generate income?YesNo
Is the project self-sustaining?Yes
Has the financial condition of the potential beneficiary been assessed in accordance with the order of the Ministry of Finance of Ukraine dated 14.07.2016 No. 616?No
NPV Value3 UAH

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]

Management Rationale

Team competencies

Determine which competencies/expertise required for successful project preparation and implementation can be provided by the project initiator's own project team (without involving external advisors)
Project management - communication with stakeholders

[Response was provided in the Preliminary Investment Feasibility Study]

Project management - public consultations

[Response was provided in the Preliminary Investment Feasibility Study]

Project management - legal support

[Response was provided in the Preliminary Investment Feasibility Study]

Project management - working with international financial organizations (IFOs)

[Response was provided in the Preliminary Investment Feasibility Study]

Does the team have experience implementing similar projects?
No, this is the first project of its kind.

[Response was provided in the Preliminary Investment Feasibility Study]

Identify which competencies/expertise required for successful project preparation and implementation need to be strengthened by engaging independent experts or consultants
Economic feasibility study - technical expertise

[Response was provided in the Preliminary Investment Feasibility Study]

Business case - analysis of the market environment

[Response was provided in the Preliminary Investment Feasibility Study]

Economic justification - environmental expertise

[Response was provided in the Preliminary Investment Feasibility Study]

Business case - analysis of available procurement options

[Response was provided in the Preliminary Investment Feasibility Study]

Economic justification - economic analysis

[Response was provided in the Preliminary Investment Feasibility Study]

Financial analysis - financial analysis

[Response was provided in the Preliminary Investment Feasibility Study]

Strategic rationale - demand analysis

[Response was provided in the Preliminary Investment Feasibility Study]

Management justification - legal support

[Response was provided in the Preliminary Investment Feasibility Study]

Is there an understanding of where to find relevant experts and consultants?
Partially, we are considering options

[Response was provided in the Preliminary Investment Feasibility Study]

Risk assessment

Political riskDefinedUndefined
Market riskDefinedUndefined
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?

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

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

None of the options are applicable
Need for financing

Does the project require additional funding for preparation?

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

Project Approval History

DateDecision NumberPortfolioProject StatusDecisionReasonsMaturity level
15/08/2025SP-N-150825-A8733C61State SPPreliminary Investment Feasibility StudyInclude--
01/10/2025SPP-N-011025-91F06B48State SPPPreliminary Investment Feasibility StudyInclude-63