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

The loan will be used to construct new roads and improve the roads situated along the country’s important highway connections.

The money 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.

The funding will be used for the construction of a new 23km northern motorway bypass in Lviv and upgrading the existing 314km section of the M05 highway along the Kyiv-Odessa line.

The new bypass will link Lviv with the Kyiv Chop international highway and Lviv – Lutsk national road. It is expected to help around 20,000 vehicles a day.

The upgrade will be delivered to the M05 highway, which is the main north-south road connecting Kyiv and the Black Sea ports.

The projects will be carried out by state road agency Ukravtodor. Both EIB and the European Bank for Reconstruction and Development (EBRD) will co-fund the project.

Construction is slated to begin next year and complete by 2025.

EIB vice-president Lilyana Pavlova commented: “The EU bank is working towards ensuring a safer, faster and more interconnected transport system in Ukraine, with better links with the neighbouring EU.

“Modern and high-capacity regional transport systems and improved road infrastructure provide significant benefits to both Ukraine and the EU.

“This contributes to a higher quality of everyday life for people in terms of improved road safety, removal of bottlenecks and time savings, and supports economic development by boosting trade, accelerating economic growth and providing better access to services and markets.”

Earlier this month, EIB and the EU signed loan agreements to refurbish roads in Malawi.