Ukrdorinvest Discloses Average Cost Of Repairing One Kilometer Of Road In Ukraine

19 April 2017 10:52

Major repairs of Ukrainian roads cost an average of UAH 20 million per kilometer. The Ukrdorinvest state enterprise’s Director Olena Kryvoruchko announced this in her blog on the CFTS portal.

"The average cost of an overhaul is UAH 20 million per kilometer (which is significantly less than the cost in Europe) while the average cost of moderate repairs is about UAH 10 million," Kryvoruchko said.

According to her, 150,000 kilometers out of the 164,100 kilometers of paved roads in Ukraine need repair.

According to Kryvoruchko, restoration of roads of national importance requires about UAH 500 billion, but Ukraine's state budget expenditure for 2017 is UAH 790 billion.

Kryvoruchko said that the minimum amount of funding required for full restoration of roads was UAH 100 billion per year over a five-year period. This amount rises to UAH 150 billion per year if the cost of repair of bridges and other engineering structures is included, she added.

As reported, UAH 35 billion in public investment in the road industry is expected in 2017. However, half of this amount is expected to come from surplus revenue from customs clearance of goods. Ukraine lost control over enterprises located in the non-government-controlled areas of the Donbas in March, as a result of which tax revenues will reduce, which could affect funding for the road sector, among others.

According to Minister of Infrastructure Volodymyr Omelian, an average of UAH 7 million was spent on repairing one kilometer of road in Ukraine in 2016, which is UAH 3 million less than Ukrdorinvest’s estimate.

In 2015, the head of the State Automobile Road Service (Ukravtodor), Serhii Pidhainyi, said that the estimated cost of construction of a standard 1 kilometer of category-1 road ranged from UAH 70 million to UAH 100 million, the cost of reconstruction ranged from UAH 40 million to UAH 80 million, the cost of overhaul ranged from UAH 20 million to million 30 million hryvnia, and the cost of moderate maintenance ranged from UAH 8 million to UAH 12 million (in 2015 prices). 

According to the Shulhin State Road Research Institute, it is much cheaper to build roads in Ukraine than in the world’s leading countries. "Construction of 1 kilometer of category-1 highway costs USD 10 million in the United States, USD 11 million in Canada, and EUR 10.5-14.5 million in Europe," Ukravtodor said in 2015.

For example, it was reported in September 2015 that the cost of overhauling one kilometer of H-01 Kyiv-Znamianka state highway was EUR 1.99 million (this is a category 1-B highway). However, it should be noted that costs could vary significantly because repair of various segments of the same road requires works of various volumes and complexity.