10 good news reports about Ukraine’s infrastructure in 2020
By Jaanika Merilo
January 16, 2021
2020 was challenging, to say the least. But despite everything, there was also some good news from infrastructural projects, part of which should, step-by-step, create the basis for future growth in Ukraine.
Airports
Modern airports are not just enablers for traveling but have a direct impact on economic growth. Different international research shows that the existence of modern airports increases the gross domestic product of the region by up to 3%. The state of Ukrainian airports is sad if we don’t take into account the new terminals built to host the Euro 2012 football championships. Even the 1 million inhabitants in the eastern provincial capital of Dnipro don’t have a modern airport. For the first time in eight years, the Verkhovna Rada, Ukraine’s parliament, and the government have dedicated funding for the upgrade of six airports – Dnipro, Odesa, Kherson, Vinnytsia, Rivne and Zakarpattia.
Roads
Ukravtodor has repaired and built a record number of almost 4,000 kilometers of roads, new and innovative weight-in-motion technology is being installed in the roads to preserve them as well. WIMs will automatically weigh the trucks driving over the complex at normal speed, and in the case of overweight vehicles, will also automatically levy fees. And, of course, all information can be reviewed in open dashboards. Last year almost 50 WIMs were installed and this year the number is expected to reach 100 covering the busiest roads and ports.
Road safety and speed cameras
For the first time, the road safety program was fully executed in order to step-by-step decrease the number of accidents and deaths on the roads. The number of over 3,000 death annually is too high, compared to European countries, and the aim of Infrastructure Minister Vladyslav Krykliy is to decrease the number of deaths by 30% by 2024 as compared to 2019 and by 50% by 2030. The measures taken include a wide area of activities, starting from the installation of 220 speed cameras up to almost over 200 cars delivered to emergency services.
Launch of speed cameras
As part of the road safety program, together with the Interior Ministry, the first patch of the speed cameras was installed to further decrease the number of accidents. The results are obvious already, with the three-fold decrease of the accidents in the locations where the cameras were installed. This year the number of cameras will be expanded to over 300 all over Ukraine in most critical locations of accidents.
Digitalizing the infrastructure
Last year several extensive digital projects were launched. The coolest ones noticed might have been the possibility to use digital passport instead of the paper or plastic in first airports, launched together with the Ministry of Digital Transformation. But there is so much more in the background from the Weight Control System, showing real time analytics from the weight complexes, to the transportation portal where over 630 000 permits for international cargo were applied for and submitted electronically. Not to mention the launch of SmartTicket. Going for the full automation, comfortable e-services and decrease of the human factor.
‘Death to old marshrutkas’ reform started
The start has been given to the reform of marshrutkas and transformation of municipal transport from near-to-death state to new and environmentally friendly. Together with European Investment Bank, the “Municipal Transport in Ukraine” program was expanded and cities received over 400 million euros of credit to buy new trolleys, trams and buses. As well, the Ministry of Infrastructure has, together with cities, developed the new legislation in order to shift away from old marshrutkas and move from non-transparent biddings to open procurement of transportation services over Prozorro. The amendments to legislation have been supported by the government and awaiting the support of Rada.
New carriages for Ukrzaliznytsia
Quite obviously the airports, marshrutkas and roads are not the only ones, to be in sad condition after tens of years of exploitation without any upgrade. Let’s not forget about our trains that are as well in desperate need of “just do something about it.” For the first time since independence, there is financing to buy 100 new carriages to upgrade the level of comfort for passengers of Ukrzaliznytsia.
Start of the concessions season
This time the list for privatization is more expensive than ever, and yes I do believe in a string of private-public partnerships. Almost 40% of the list includes infrastructure projects and in next years the successful experience of privatization of Kherson and Olvia ports may be expanded. The list includes the airports and even railway stations along with the Kyiv Railway Station escalator, which has become sort of the legend.
Law of the river transportation gets a ‘yes’
The “freshly voted” law on river transport will hopefully help to unload the roads from overweight trucks, saving billions on repairs and bringing supposedly up to 16 billion hryvnias to the state budget.
Ukrposhta championing the reforms
Even though it might come as a surprise to some, the state-owned company Ukrposhta is actually profitable for the second year in a row. Despite the pandemic turmoil, the delivery of pensions and goods didn’t stop for a single day, and Ukrposhta pursuing its goal of extending digital and banking service in 100% of cities and villages in Ukraine for the first time in its history as well. As a first step in setting up the infrastructure for the future, 600+ movable offices began working in 7 regions with 1800+ more to come in 2021 to cover the entire country assuring quality last-mile delivery in the smallest villages in remote areas.
If this was a challenging year, but a lot got done. I can’t wait to see the progress in a normal year.
