Small Carpathian Circle


Sector
Municipal infrastructure and services
Stream
Development and rehabilitation of municipal infrastructure of subnational governments
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 "Small Carpathian Circle" project is a comprehensive initiative to develop the transport and tourism infrastructure of the mountainous regions of Transcarpathia, Lviv and Ivano-Frankivsk regions. Its key idea is to create a ring road route 248.9 km long, which will unite the main tourist locations of the historical and ethnographic region of Boykivshchyna. The goal of the project is not only to improve transport connections, but also to create a holistic tourism ecosystem that will contribute to the sustainable development of the region, increase employment and improve the well-being of local communities. The Small Carpathian Circle combines a large number of tourist-attractive locations - natural and historical monuments, recreational and entertainment locations, in particular, Lake Synevyr, the Borzhava, Pishkonya and Skolivskie Beskydy mountain ranges known throughout Ukraine; Parashka and Makivka mountains, Mizunsky waterfall, 500-year-old Mizunsky oak; Goshivsky Monastery, the Stare Selo open-air museum in Kolochava, the “Carpathian Tram” in Vyhoda, ancient Boykiv wooden churches, ski resorts in Pylypetska  and Slavska communities, more than 100 active tourism routes (pedestrian, cycling, skiing and horseback riding). The creation of high-quality transport connections will open up access for tourists to lesser-known, but no less valuable and interesting localities located along the entire route, ensuring an even distribution of tourist flows, supporting small and medium-sized businesses, as well as preserving the cultural identity of mountain communities.

The purpose of the project

Main goal:

Improving the condition of infrastructure

Secondary goal:

Creation of new facilities and services

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

To create a holistic infrastructure and tourism ecosystem in the Carpathian region by creating high-quality road infrastructure, bicycle and pedestrian paths, building new bridges, lighting and traffic safety measures along the entire route. This will ensure sustainable economic development, improve the quality of life of the local population and popularize the unique cultural heritage of Boykivshchyna, which will allow directing new tourist flows to these territories.

Problems and solutions resulting from project implementation

The territory of the Ukrainian Carpathians, in particular the Boykivshchyna region, faces acute socio-economic and infrastructural problems that directly affect the quality of life of the local population and limit the tourism potential. The geographical location and complex mountainous terrain create problems and obstacles with movement and logistics. Road infrastructure, in particular lighting, areas for cycling or walking, are to some extent completely absent. This leads to the fact that: - Local residents have to spend significantly more time and effort to get to neighboring settlements, often using bypass routes through passes. - This negatively affects access to vital social services, such as healthcare, education and other social services. In critical situations when urgent medical care is needed, poor roads can cost lives. The absence of pedestrian zones increases the number of accidents, as most people are forced to travel on foot on roads. - Low level of tourist attraction to active recreation. For example, the lack of bicycle paths makes it impossible to develop a network of bicycle paths, which in turn reduces the demand for services. - The low quality of road infrastructure is the main barrier to the development of tourism in the region. It limits tourists' access to: Natural and recreational locations. Unique national natural parks, mountain lakes, waterfalls and peaks remain difficult to access. - Tourists are unable to explore the unique Boyko culture, visit ethnographic museums, workshops or festivals due to the inconvenience of transportation. This fragmented tourist potential, as indicated in the project, does not allow combining attractions into a single, attractive product, which in turn negatively affects the economic development of the region. - The economic consequences of poor infrastructure and limited tourist flow are devastating for local communities: Economic stagnation. The lack of proper infrastructure hinders the development of small and medium-sized businesses in the tourism and related sectors. - Population outflow. In conditions of limited opportunities for earning money, young and able-bodied residents leave their homes and move to large cities with developed infrastructure. - Demographic crisis and loss of identity. This population outflow leads to a demographic crisis, threatening the preservation of the unique Boyko culture, traditions, crafts and other cultural heritage characteristic of the Carpathian region.

Socio-economic context

Indicator

Value

Other economic

35 %

Other economic

30 %

Other economic

22 %

Other functional

9 mln people

Other social

1 mln people

Other social

100 thous. people

Strategic Case

Strategic feasibility of the project

Sector

Municipal infrastructure and services

Subsector

Development and Reconstruction of Subnational Infrastructure

Stream

Development and rehabilitation of municipal infrastructure of subnational governments

Strategic document

State Strategy for Regional Development for 2021–2027

Task

Task 2 in the direction of “Stimulating the development of territories” of Operational Objective 1. Ensuring integrated development of territories taking into account the interests of future generations Implementation of priority measures for the safety of life, restoration and stimulation of economic activity in territorial communities

Project objectives

Indicator
Base value
Target value
Construction of bridges to connect settlements in three regions
0 units
37 units
Stimulate the development of small and medium-sized businesses both in the tourism sector (hotels, catering establishments, craft production, agritourism) and in related industries - transport services, construction
5 %
33 %
Modernize road infrastructure with bicycle paths and pedestrian zones to connect settlements in the three regions
67.8 km
248.9 km
Integration of remote locations into the general tourist flow
3 units
18 units
Increase tourist flow to mountainous regions (Transcarpathia, Lviv and Ivano-Frankivsk)
0 %
30 %
Creation of additional jobs (market decentralization in the field of service provision)
1000 workplaces
2150 workplaces

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?

Transition to a circular economy
[Response was provided in the Preliminary Investment Feasibility Study]
Climate change adaptation
[Response was provided in the Preliminary Investment Feasibility Study]
Pollution prevention and control
[Response was provided in the Preliminary Investment Feasibility Study]

Якісне дорожнє покриття та оптимізована транспортна інфраструктура зменшують викиди CO2 та інших шкідливих речовин

Sustainable use and protection of water and marine resources
[Response was provided in the Preliminary Investment Feasibility Study]
Protecting and restoring biodiversity and ecosystems
[Response was provided in the Preliminary Investment Feasibility Study]
Climate change mitigation
[Response was provided in the Preliminary Investment Feasibility Study]

Якісне дорожнє покриття та оптимізована транспортна інфраструктура зменшують викиди CO2 та інших шкідливих речовин. Створення якісних велосипедних доріжок та пішохідних зон підвищує безпеку та комфорт для велосипедистів і пішоходів, стимулюючи відмову від автомобілів на короткі відстані.

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

Protecting and restoring biodiversity and ecosystems
[Response was provided in the Preliminary Investment Feasibility Study]
Climate change adaptation
[Response was provided in the Preliminary Investment Feasibility Study]
Pollution prevention and control
[Response was provided in the Preliminary Investment Feasibility Study]
Transition to a circular economy
[Response was provided in the Preliminary Investment Feasibility Study]
Climate change mitigation
[Response was provided in the Preliminary Investment Feasibility Study]
Sustainable use and protection of water and marine resources
[Response was provided in the Preliminary Investment Feasibility Study]

Project sustainability and inclusivity

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

The project may result in the forced displacement of women, men and other gender groups or loss of access to resources
[Response was provided in the Preliminary Investment Feasibility Study]
Not applicable to my project
[Response was provided in the Preliminary Investment Feasibility Study]
Other gender risks
[Response was provided in the Preliminary Investment Feasibility Study]
There are risks of impaired mobility or safety for women, men and other gender groups during construction/operation
[Response was provided in the Preliminary Investment Feasibility Study]
There is a risk of reduced economic opportunities for women, men and other gender groups (e.g. loss of jobs or retail outlets)
[Response was provided in the Preliminary Investment Feasibility Study]

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

Not applicable to my project
[Response was provided in the Preliminary Investment Feasibility Study]
Other benefits from project implementation
[Response was provided in the Preliminary Investment Feasibility Study]

Врахування інтересів місцевих громад (у т.ч. ВПО та демобілізованих військових). Потенціал для спільного підприємництва та локальних ініціатив (сувенірні лавки, фермерські ринки, екскурсії тощо).

Envisaged training or advanced training for women in the private sector
[Response was provided in the Preliminary Investment Feasibility Study]
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

Complete reconstruction of the route according to state standards

Technical Solution 2

Phased update with a focus on tourist mobility

Total costs37'524'522'000 UAH37'524'522'000 UAH
  • For preparation
  • 50'000'000 UAH50'000'000 UAH
  • For implementation
  • 17'474'522'000 UAH17'474'522'000 UAH
  • For operation
  • 20'000'000'000 UAH20'000'000'000 UAH
    Average annual costs43'639'548 UAH43'639'548 UAH
    Project duration, incl.60 months84 months
  • Deadline for developing a FFS
  • 12 months24 months
  • Implementation period
  • 48 months60 months
    Service life240 months240 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]

    В Україні існує достатня кількість великих та середніх дорожньо-будівельних компаній з відповідним досвідом та технічною базою для виконання робіт з реконструкції та будівництва доріг. Багато з них вже мають досвід роботи в гірських умовах.

    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?
    Yes

    [Response was provided in the Preliminary Investment Feasibility Study]

    Проведено моніторинг державних закупівель на аналогічні види робіт

    Financial justification

    Total project budget

    Total preliminary budget37'524'522'000 UAH37'524'522'000 UAH
    Capital costs37'524'522'000 UAH37'524'522'000 UAH
    Operational costs0 UAH0 UAH

    Preliminary cost breakdown

    Operating costs for implementation0 UAH0 UAH
    For preparation50'000'000 UAH50'000'000 UAH
    For implementation17'474'522'000 UAH17'474'522'000 UAH
    For operation20'000'000'000 UAH20'000'000'000 UAH
    For closing0 UAH0 UAH
    Were the methodological recommendations approved by the Ministry of Finance of Ukraine applied when calculating the indicative budget?
    Yes
    [Response was provided in the Preliminary Investment Feasibility Study]

    Average project cost per service recipient

    Service UnitВикористання дороги пасажирами транспортних засобів
    Service Unit Cost292 UAH

    Profitability of the project

    Is the project expected to generate income?

    ResponseNoNo

    Availability of services

    Has an analysis been conducted of the accessibility of services for consumers and their financial ability to pay the established tariffs?
    Not applicable – the project does not provide for the provision of paid services or the establishment of tariffs

    [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?
    The project does not fall under the PPP format by its nature/character

    [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?
    Yes

    [Response was provided in the Preliminary Investment Feasibility Study]

    Створення паркувальних майданчиків, АЗС та пікнік-локацій для відпочинку людей

    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)
    Strategic justification - analysis of the strategic feasibility of the project

    [Response was provided in the Preliminary Investment Feasibility Study]

    Economic justification - economic analysis

    [Response was provided in the Preliminary Investment Feasibility Study]

    Project management - communication with stakeholders

    [Response was provided in the Preliminary Investment Feasibility Study]

    Project management - risk management

    [Response was provided in the Preliminary Investment Feasibility Study]

    Economic justification - social and gender analysis

    [Response was provided in the Preliminary Investment Feasibility Study]

    Project management - public consultations

    [Response was provided in the Preliminary Investment Feasibility Study]

    Economic feasibility study - technical 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]

    Project management - legal support

    [Response was provided in the Preliminary Investment Feasibility Study]

    Strategic rationale - SDG compliance analysis

    [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]

    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]

    Economic justification - environmental 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]

    Does the team have experience implementing similar projects?
    Partially, we have limited experience

    [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]

    Грунтовні обгрунтування у сфері будівництва автомобільних доріг у складних гірських умовах, що вимагає знання фахівціву сфері інженерії, геології та проєктування

    Economic justification - social and gender analysis

    [Response was provided in the Preliminary Investment Feasibility Study]

    Strategic justification - forming a justification for the problem and need

    [Response was provided in the Preliminary Investment Feasibility Study]

    Management rationale - public consultation

    [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]

    Якісної підготовки проєктно-кошторисної документації (ПКД) та техніко-економічного обґрунтування (ТЕО). Прозорого тендерного відбору. Ретельного контролю якості. Ефективного управління ризиками.

    Economic justification - environmental expertise

    [Response was provided in the Preliminary Investment Feasibility Study]

    Для проведення оцінки впливу на довкілля (ОВД) та супроводу природоохоронних процедур

    Management rationale - project management

    [Response was provided in the Preliminary Investment Feasibility Study]

    Strategic rationale - SDG compliance analysis

    [Response was provided in the Preliminary Investment Feasibility Study]

    Management rationale - communication with stakeholders

    [Response was provided in the Preliminary Investment Feasibility Study]

    Проведення публічних обговорень, прозорі інформаційні кампанії та врахування регіональних інтересів

    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]

    Management justification - other

    [Response was provided in the Preliminary Investment Feasibility Study]

    Financial analysis - financial analysis

    [Response was provided in the Preliminary Investment Feasibility Study]

    У підготовці фінансових обгрунтувань та цільовому використанні коштів на реалізацію проекту

    Management rationale - risk management

    [Response was provided in the Preliminary Investment Feasibility Study]

    Strategic justification - analysis of the strategic feasibility of the project

    [Response was provided in the Preliminary Investment Feasibility Study]

    Strategic rationale - demand analysis

    [Response was provided in the Preliminary Investment Feasibility Study]

    Management rationale - working with international financial organizations (IFOs)

    [Response was provided in the Preliminary Investment Feasibility Study]

    Супровід у разі залучення коштів донорів чи участі в грантових програмах

    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

    Financial riskDefinedUndefined
    Economic riskDefinedUndefined
    Operational riskDefinedUndefined
    Market riskDefinedUndefined
    Environmental riskDefinedUndefined
    Other 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?

    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]
    Finalization of existing documentation for the preparation of a preliminary 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]
    Updating existing documentation regarding the preparation of design and estimate documentation (DED)
    [Response was provided in the Preliminary Investment Feasibility Study]
    Updating existing documentation regarding the preparation of the feasibility study
    [Response was provided in the Preliminary Investment Feasibility Study]
    Other
    [Response was provided in the Preliminary Investment Feasibility Study]
    Need for financing

    Does the project require additional funding for preparation?

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