Development of the network of public highways of state importance

Sector

Transport Sector

Stream

Development and restoration of public road infrastructure

Entry into Portfolio

State level of SPP

Maturity level

General Information

Program Description

The purpose of the Program is to restore and develop public roads of national importance to integrate them into the European transport system and increase the level of traffic safety, speed, comfort and efficiency of transportation on them.

The implementation of the Program will make it possible to improve the transport and operational condition of public roads of national importance along the main routes, primarily along the directions of international and national transport corridors, on approaches to large cities, roads with high traffic intensity and access roads to nuclear power plants, thermal power plants, air and sea ports, military bases, elevators, railway stations, district and regional centers, territories and objects of the nature reserve fund of national importance.

Strategic Case

Program Goal

Main Goal: Improvement of infrastructure condition

Secondary Goal: Improvement of service quality, Modernization to comply with current standards, Reconstruction of damaged/destroyed assets, Expanding access to goods and services, Creation of new facilities and services

Problems: About 90% of state-owned public roads (about 35 thousand km) are in poor condition. Today, 1,472 artificial structures on state-owned public roads are in a state of emergency. The main problems due to the poor condition of the state-owned road network are: economic losses for the country, social tension, reduced road safety, deterioration of the environment, and a decrease in the state's defense capability. In 2024–2025, all revenues from the state road fund will be directed to the general fund of the state budget in order to strengthen the army and strengthen the defense of the State. The above situation has led to a significant deterioration in the condition of state-owned public roads. It should be noted that state-owned public roads are the main transport arteries of Ukraine and have a significant impact not only on the general state of the country's economy, but also on defense capability. Improving the condition of public roads of national importance will contribute to both the defense capability of the state and the development of trade relations, the expansion of industrial ties, an increase in the level of road safety, a reduction in the negative impact on the environment, and the intensification of scientific and technical cooperation with European countries.

Strategic Relevance of the Program

Sector

Transport Sector

Stream

Development and restoration of public road infrastructure

Strategic Document

National Transport Strategy of Ukraine until 2030

Task

1 Development and restoration of public road infrastructure

Program Objectives

Indicator

Baseline Value

Target Value

Programme Sustainable Development Goals

Economic Case

Economic feasibility of the program

What are the main benefits expected from the implementation of the program for the economy, business, society, or individual industries?

Improving energy efficiency

Other benefits

Improving business conditions

Increasing employment levels, creating new jobs

Growth in production, market volumes of goods/services/investments

Reducing regional imbalances

Infrastructure development

Improving the quality of life of the population

Increase in budget revenues

Does the program objective provide for a contribution to the climate goal of mitigating the effects of climate change?

Reducing or avoiding greenhouse gas emissions

Reducing the use of fuel and energy resources

Does the program objective provide a contribution to the climate change adaptation objective: reducing the impact and/or reducing the vulnerability of an asset or population to one or more types of physical climate hazards?

Threats associated with solid masses (coastal erosion; soil degradation; soil erosion; solifluction; avalanche; landslide; subsidence)

Temperature-related threats (changes in air, fresh water, seawater temperatures; heat stress; temperature fluctuations; heat waves; frost; forest fire)

Does the programme objective provide for a contribution to the climate objective of sustainable use and protection of water and marine resources?

Increasing the efficiency of water resources use

Reducing the negative impact of urban and industrial wastewater discharges

Reducing drinking water pollution

Does the program objective provide for a contribution to the climate goal of transitioning to a circular economy?

Increasing the use of by-products and secondary raw materials, including by increasing the recyclability of products or waste

Reducing the content of hazardous substances and replacing substances of particular environmental concern in materials and products throughout their life cycle

Minimizing incineration and avoiding landfilling of waste

Development of waste management infrastructure

Reducing the use of primary raw materials

Preventing or reducing waste generation

Does the programme objective provide for a contribution to the climate objective of pollution prevention and control?

Preventing or reducing emissions of pollutants into air, water or soil

Improving air, water or soil quality

Preventing or minimizing the negative impacts of the production, use or disposal of chemicals

Does the program objective provide for a contribution to the climate goal of protecting and restoring biodiversity and ecosystems?

Nature conservation and biodiversity

Sustainable land use and management of land resources

Sustainable forest management

What social consequences are relevant for your program, after its implementation?

Enhancing public participation

Increasing employment levels

Improving living conditions

Improving access to basic services

Other social consequences

Reducing social inequality

Why is it advisable to implement projects in the format of one comprehensive program, and not separately?

Strengthening the overall impact through the interaction of individual projects within the program

Ability to simultaneously cover several interrelated aspects of a problem and ensure a systematic approach

Cost reduction through pooling of resources and centralized management

Implementing activities within a common or adjacent territory to achieve a more effective result

Ensuring coordinated planning, management and monitoring of projects within a single structure

The need to comply with legal requirements, government strategies or policies

Other

How will the program help strengthen other economic processes or reforms?

Optimization of logistics or production chains

Promoting the development of related sectors of the economy

Support for the implementation of state or sectoral reforms

Deepening integration into international economic processes

Stimulating digitalization and innovation

Other

Program Components

Component ID

DREAM-3

Major repairs of public roads of state importance

Justification

Today, the Recovery Agency has 416 unfinished capital repair facilities. The cost of work to complete the initiated projects is over 70 billion UAH. Component 3 of this Program provides for the repair of part of these facilities over the next 3 years, in particular those that are a priority for the state, taking into account the needs of the country during the war period. Given the significant number of projects (facilities) for the capital repair of national roads, both initiated and planned, it is advisable to develop a Program with components that will include the relevant projects for the capital repair of national roads.

Year

Amount

22'673'163'500 UAH

84'667'011'200 UAH

124'156'258'000 UAH

Component ID

DREAM-2

Reconstruction of public roads of national importance

Justification

Today, the Reconstruction Agency has 82 unfinished reconstruction projects. The cost of work to complete the initiated projects is over 30 billion UAH. Component 2 of this Program provides for the completion of some of these projects over the next 3 years, in particular those that are a priority for the state, taking into account the needs of the country during the war period. Given the significant number of projects (objects) for the reconstruction of national highways, both initiated and planned, it is advisable to develop a Program with components that will include relevant projects for the reconstruction of national highways.

Year

Amount

2'050'000'000 UAH

7'300'000'000 UAH

11'147'265'000 UAH

Component ID

DREAM-1

New construction of public roads of national importance

Justification

Today, the Reconstruction Agency has 77 unfinished new construction projects. The cost of work to complete the initiated projects is over 130 billion UAH. Component 1 of this Program provides for the completion of some of these projects over the next 3 years, in particular those that are a priority for the state, taking into account the needs of the country during the war period. Given the significant number of projects (objects) for the construction of national highways, both initiated and planned, it is advisable to develop a Program with components that will include relevant projects for the construction of national highways.

Year

Amount

1'950'000'000 UAH

6'500'000'000 UAH

10'748'399'700 UAH

Financial justification

Total estimated program cost

271'192'097'400 UAH

Estimated cost of program components

271'192'097'400 UAH

Component

Amount

Major repairs of public roads of state importance

231'496'432'700 UAH

Reconstruction of public roads of national importance

20'497'265'000 UAH

New construction of public roads of national importance

19'198'399'700 UAH

Cost justification

Short description

Justification documents

n/a

Cost calculation 2026-2028.xlsx

n/a

Cost justification 2026-2028.pdf

Sources and mechanisms of financial support for the implementation of programs.

Status

Funding mechanisms

Coverage, %

Investment

Non-repayable financing. Direct budget financing. State Fund for Regional Development (SFRD), state target funds, and other revenues of the special fund of the state budget, which may be allocated for capital expenditures.

100%

Justification documents

To the documents

What potential funding sources can be mobilized on the basis of prior agreements or intentions to cooperate (if any)

Funds of the State Budget of Ukraine, in particular the special fund of the state budget - the state road fund

Management Case

Total program duration (months): 36

Approaches to project selection

Have approaches and criteria been defined for including public investment projects in the program, initiators of such projects, and their prioritization?

Yes

Organizational Measures

Execution of construction works for new construction, reconstruction and major repairs of public roads of state importance

36 months

Execution of works on designing new construction, reconstruction and major repairs of public roads of state importance, including design for future periods

36 months

Risk Assessment

Risk

Probability

Degree

Strategy

Risk

In 2024–2025, all revenues from the state road fund were directed to the general fund of the state budget to strengthen the army and strengthen the defense of the State. There is a risk that the situation will repeat in 2026.

Probability

High

Degree

Critical

Strategy

Acceptance

Risk

Currently, there has been a decrease in the production capacities of contracting organizations in recent years. Another technical risk is the specificity of technological processes during road works (duration of the construction season).

Probability

Medium

Degree

Considerable

Strategy

Avoidance

Risk

A change in the country's political leadership may affect the vector of policy regarding the restoration of highways

Probability

Low

Degree

Minor