Italy’s civil engineering company Torno Internazionale s.p.a. signed a preliminary agreement Oct. 8 with Ukraine’s Transportation Ministry to help raise financing for construction of a partially completed high-speed autobahn that would connect Kyiv and Odessa.
The agreement was signed by Torno Internazionale and Ukravtodor, the department within Ukraine’s Transportation Ministry responsible for road development and maintenance.
President Leonid Kuchma and his Italian counterpart Silvio Berlusconi were present at the signing ceremony. At that time, Bersculoni was attending a European Union summit in Crimea.
The agreement involves a 420 million euro loan that would be used to fund construction of the toll highway, which Ukraine has slowly been building for several years due to a lack of funding. Neither the Ukrainian nor Italian sides disclosed specific project details.
A Torno official said that his company would help Ukraine raise the necessary funds for completing the 450- kilometer-long highway.
“Torno Internazionale s.p.a. signed an agreement with the Ministry of Transport of Ukraine and Ukravtodor (Ukrainian State Road Agency) in which the parties committed themselves to jointly obtaining financing for the enlargement and reconstruction of the highway,” Sebastian Otero Asp, Overseas Business Development Manager at Torno Internazionale told the Post on Oct 17.
About 170 million euros have already been allocated by the Transportation Ministry.
“Torno’s involvement in this project, which has already started and is well underway, will be as general contractor, with the task of maximizing construction quality, completing the works in a timely manner and ensuring cost efficiency by using mostly Ukrainian materials and manpower.”
“Once the highway is completed, it will be operated under a toll system. The revenues will contribute to repaying the loan for this project,” he added.
Otero Asp said his company would manage the technical and financial aspects of the project, and may participate in the development of highway infrastructure, including construction of tollbooths and shops, expected to consume up to 25 percent of the loan.
Transportation Minister Hryhory Kirpa told Interfax-Ukraine Oct. 8 that the Italian company would take on responsibility for obtaining a loan.
Neither Torno Internazionale, Ukraine’s Transportation Ministry nor Ukravtodor would discuss the details of the loan.
Kirpa said the 40-year loan will be interest free and available in February.
The agreement foresees Ukraine and the Italian company jointly constructing and operating the highway, he said.
Construction will begin next spring and will be completed by fall, he added.
On June 12, President Leonid Kuchma signed a bill into law that ordered reconstruction of one of the most hazardous stretches of the highway. The original plan called for the reopening of the reconstructed stretch, between Cherkasy and Odessa oblasts, by the end of the year. This would be the country’s first toll road, charging cars and trucks between Hr 0.12 and Hr 0.31 per kilometer, respectively.
Transportation officials promise that an alternative free road that runs alongside the high-speed toll autobahn will also to be constructed.
Portions of the current highway are two lanes and other sections are four lanes, or 14 meters wide. The reconstruction project calls for expanding the road to four to six lanes of traffic.
