The European Bank for Reconstruction and Development (EBRD) has agreed to provide a loan to Ukraine to support road infrastructure development at the regional level.

As part of this initiative, EBRD will provide €40m for the reconstruction of two regional highways spanning 95.3km in Dnipropetrovsk region.

A loan of €25m has been sanctioned for the construction of a bridge over a railway line.

Upon completion, the over bridge will establish new connectivity between two districts of Kherson region.

The project works will be initiated in Kherson and Dnipropetrovsk regions next year.

Ukraine Deputy Finance Minister Oleksandr Kava said: “One of the promising areas of Ukraine’s cooperation with the EBRD is loans to finance road infrastructure at the regional level.

“I am glad that the work that started two years ago is bearing fruit: the preparation of projects in this area has begun and that the necessary legal and regulatory conditions for such support will be created.

“I welcome the leadership of Dnipropetrovsk and Kherson oblasts, where pilot projects will be implemented. For its part, the Ministry of Finance is ready to join this work.”

Last November, the European Investment Bank (EIB) approved a €450m loan to facilitate the rehabilitation of the Ukrainian road network.

The loan was provided to construct new roads and improve roads situated along the country’s important highway connections.

In addition, the loan will be used to improve the road network included in the extended Trans-European Network for Transport (TEN-T) that connects Ukraine to the EU