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?

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?

Other benefits from project implementation
[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

Cost breakdownCost justificationCost justification
Project cost (preparation and implementation)17'524'522'000 UAH17'524'522'000 UAH
For preparation50'000'000 UAH50'000'000 UAH
For implementation17'474'522'000 UAH17'474'522'000 UAH
Project operation and closure cost20'000'000'000 UAH20'000'000'000 UAH
For operation20'000'000'000 UAH20'000'000'000 UAH
Average annual costs43'639'548 UAH43'639'548 UAH
Project duration, incl.60 months84 months
Deadline for developing a FFS12 months24 months
Implementation period48 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]

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]

Financial justification

Total project budget

Total preliminary budget37'524'522'000 UAH37'524'522'000 UAH
Project cost (preparation and implementation)17'524'522'000 UAH17'524'522'000 UAH
For preparation50'000'000 UAH50'000'000 UAH
For implementation17'474'522'000 UAH17'474'522'000 UAH
Project operation and closure cost20'000'000'000 UAH20'000'000'000 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?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?
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]

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]

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]

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]

Strategic rationale - demand analysis

[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]

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]

Management rationale - communication with stakeholders

[Response was provided in the Preliminary Investment Feasibility Study]

Financial analysis - financial 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]

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]
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-150825-187FAFD1State SPPreliminary Investment Feasibility StudyCancellation of the decision to include in a joint venture--
07/10/2025SP-N-071025-F99AAE06State SPPreliminary Investment Feasibility StudyInclude--
01/10/2025SPP-N-011025-EC9AFCF5State SPPPreliminary Investment Feasibility StudyNot approved--
28/10/2025SPP-N-281025-821CD9E1State SPPPreliminary Investment Feasibility StudyNot approved--