World Bank has approved a $450m loan for the Second Roads and Safety Improvement Project (RSIP2) in Ukraine.

The project, which received approval from the World Bank’s board of executive directors for funding, is expected to improve the Kyiv-Kharkiv road between the cities of Lubny and Poltava.

The RSIP2 project will be implemented by Ukravtodor, the state road agency, and is expected to enhance safety across the country’s network of roads.

World Bank director for Ukraine, Belarus and Moldova, Qimiao Fan, said that the project will bring social and economic benefits to local communities by creating more economic activities and jobs.

"The project will lead to the reduction of cost and time spent on moving people and goods on this key road artery of country," Fan added.

"The RSIP2 project will be implemented by Ukravtodor, the state road agency, and is expected to enhance safety across the country’s network of roads."

Road users and local communities are expected to be the major beneficiaries of the project, which will include many new road safety features.

"It will also contribute to improved road safety on selected road corridors and decrease the number of road accidents," Fan noted.

The venture will help the country make its roads safer, in line with the United Nations Decade for Road Safety, while also being fully consistent with the new Country Partnership Strategy for Ukraine.

The RSIP2 is a follow-up project of the ongoing Roads and Safety Improvement Project (RSIP1), which was approved by the World Bank board in 2009 and is estimated to cost $400m.

The RSIP1 has improved road conditions and safety along the Kyiv-Kharkiv stretch, between the cities of Boryspil and Lubly.

Ukraine joined the World Bank in 1992 and since then has received over $7.5bn for 41 projects.