Decentralisation of roads and establishment of road fund: what it means for Ukraine

Since 1 January, two innovations are implemented by the Ministry of Infrastructure - decentralisation of local roads and the establishment of the State Road Fund.

120 thousand kilometers of roads are being transferred into the domain of oblast authorities. Local authorities will deal with construction, repair and maintenance of roads. Ukravtodor will keep on its balance only 50 thousand km of roads of state significance.

Funding is also decentralised. From now on, the single State Road Fund is set up, which will annually receive fixed amounts of money from the budget. The road fund will distribute funds between oblast budgets (35% of funding, this year – UAH 11.41 billion) and Ukravtodor (60% of funding, UAH 19.5 billion UAH in 2018). Ukravtodor will also keep its debt repayment obligation amounting to UAH 6 billion for the current year.

"The advantage of the road fund is that this will be protected funding. The second advantage is the decentralisation of Ukravtodor will be held with transferring not only roads, but also funding to the local level. This is a significant step forward - now all residents can demand proper repairs from the local authorities," commented Minister of Infrastructure Volodymyr Omelyan.

02.01.2018 - 11:04 | Views: 12076
Decentralisation of roads and establishment of road fund: what it means for Ukraine

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