The approximate period of construction of the first concession road in Ukraine – the Lvov-Krakovets road – will be four or five years. Terezia Babych, the head of the department of international cooperation and investment at the State Automobile Road Service (Ukravtodor), announced this to the Interfax Ukraine news agency.

According to her, a private investor will provide 100% of the funds for financing the construction of this road, and the concession will be for up to 49 years. The concessionaire will be responsible for construction, maintenance, and repair of the road.

According to Babych, a category 1-A road with a length of 84.4 kilometers is planned for construction. The road will have four lanes and have an estimated speed limit of 120 kilometers per hour.

Asked how the toll for this road would be determined, Babych said that the Cabinet of Ministers would resolve this issue.

In addition, according to Babych, Ukravtodor has already obtained all the necessary acts for the land on which the road will be constructed and the concessionaire will be selected via an open competition. According to her, the competition could be held tentatively by December 25 this year.

The government recently approved the terms of the competition for construction of the Lvov-Krakovets concession road. It will be the first concession project in Ukraine. Its cost effectiveness is expected to show other investors whether it is worth investing in similar projects in Ukraine. Construction of roads through public-private partnership (concession) involves return of the concessionaire’s investment through the collection of tolls, as well as fees for access and operation of road service facilities, roadside infrastructure, advertising, logistics centers, modern communication lines along the road.