In Ukraine will be the first toll roads: when and where

There are toll roads in most European countries and in the neighbouring Belarus, Russia and Moldova. In some countries, travel is free for passenger cars with local numbers, but paid to foreigners and trucks. In Ukraine they say about the construction of concession roads since 1999. According to the promises of the current head of Ukravtodor, the first toll road in the country will begin to build from 2018. The website “Today” to understand where and under what conditions will build the first highway concession in Ukraine.

Where there will be a toll road

Concession roads are built by private companies, then 30-50 years contain and collect with motorists tolls. The advantage of tolls is that it is better and shorter, free and speed it higher. When these are highways – an alternative to the existing roads.

In may 2015 “Ukravtodor” announced a competition for the construction of Ukraine’s first concession road Lviv – Krakovets. But in September of 2015 bids of two bidders rejected due to the mismatch criteria. This road promised to build since 1999.

According to the latest statement by the acting head of “Ukravtodor” Slawomir Nowak, the first toll road will appear between Kiev and Bila Tserkva, and between the Krakovets and Lviv, and to build them will begin in 2018. It is in these areas a sufficient stream of cars which will be of interest to investors, according to the Department. The stretch of road from the Polish border in the future will be included in the TRANS-European corridor between the ports of Gdansk and Odessa GO Highway.

Photo: “Ukravtodor”

“As international experience shows, concessionaires interesting roads with medium traffic not less than 18-20 thousand cars per day. The best under this criterion fits the project connecting the city with the border of Poland, i.e. the project Lviv-Krakovets. In addition, in my opinion, can be interesting for private investors the construction of a new motorway between Bila Tserkva and Kiev. Here you can build a new toll road concession, and the current track will be her free choice. Also can be interesting for concessionaires some parts of ring road around Kiev”, – told RBC Slawomir Nowak.

The cost of using a toll road in Ukraine is too early to call. Now not even hold tenders for the construction of toll motorways. In Austria, for example, the fee for the use of expensive for 10 days worth of 8.9 euros. In Bulgaria, eight euros for seven days, in Moldova – four euros.

However, the boom of toll roads in Ukraine is not worth waiting, as the country is not much traffic on the roads, experts say. As told “Today” the adviser of the head “Ukravtodor” Alexander kawa, in Ukraine, the toll road will be beneficial at the entrances to major cities.

“Any large-scale projects, such as highways across the country on a concession basis, we have private investors will not build. And the reasons are quite objective: low population density and low purchasing power. High traffic is only on the entrances to the biggest cities. High country it is now possible to build a portfolio of five real projects, not more,” says cava.

To build toll roads the law prevents

The current law on concessions does not guarantee the investor a return on investment. The Builder of the toll road need to be sure that the track will go at least 18 thousand cars. Otherwise, the company will incur losses. According to Oleksandr Kava, the new draft law is ready, the deputies were to vote for it, and then you can negotiate with private companies.

“Already prepared a draft of amendments to the law on concessions for roads. The current legislation does not attract potential investors and does not allow to recoup investments in such projects. As the experience of European countries in such contracts the government should give a guarantee of traffic. Without them any investor to invest in the projects concession roads will not” – said cava.

The draft concession law introduces the concept of assurance. The state will guarantee the supply of under construction roads of the earth. And the company is committed to build on this stretch of highway. Under the bill, the government would guarantee the company that the flow of cars on the road will be at a level that will ensure the profitability of the project. If the desired traffic will not be, the state budget will have to compensate for the losses. Paid route certain period of 30-50 years, will own only the company-Builder. Then the road will go to the government.

“If traffic is not enough, the state should compensate to the investor the difference between revenues and the level which the investor was able to collect due to the flow on the road. It works in all European countries that implemented the projects on a concession basis. The amount of compensation will be specified in the agreement between the government and the concessionaire”, – adds Alexander cava.