Ukraine has started the implementation of large-scale national program “Big construction”. The lion’s share of this program applies to road construction.
About its features in an interview with UKRINFORM told the Minister of infrastructure of Ukraine Vladislav Crickley.
– “Big construction” began, continues and will continue. Today, the rehabilitation activities are conducted at more than 150 sites in 21-th region. And the program of the President and government is restored not only about roads, but about the hundreds of thousands of new jobs. And this is very important in conditions of quarantine. The economy should work, and “Big construction” helps both contractors and workers to the state order. Among other things, we also need to involve those Ukrainians who returned from abroad.
– The other side of the same issue – financial. The resource that the country is going to accumulate for the implementation of the program, is quite significant. So, of course, there will be the temptation (and now the relevant proposals heard from some politicians and experts), to grab a part of the “financial pie” to overcome the pandemic. Are you ready for such a development?
– The government together with MPs, the team of the Ministry of infrastructure and Ukravtodor have jointly developed a solution which will provide financing from the state budget for the rehabilitation of roads in the extent that was planned before the start of the quarantine. Of course, we have to wait for a vote for changes to the state budget in the Parliament, but we expect the “optimistic” scenario. It was also planned to raise about 19 billion UAH under the state guarantees for the financing of road rehabilitation. April 1 the government approved the terms of credit funds and providing state guarantees in the year 2020. Ukravtodor will issue interest-bearing bonds without the realization of the public offering, the obligations under which are secured by a state guarantee to such conditions: the nominal value of one bond – 1 thousand UAH; interest income on the bonds is 12.5% per annum payable quarterly; maturity of bonds – from 1 to 5 years, depending on their series; the issue of bonds it is assumed five series with a nominal value 19,274 billion hryvnia.Also approved the list of objects of building, reconstruction, major and current average repair of public roads of the state value in 2020 and provided the volume of budget financing through borrowings attracted under state guarantees. In the list, in particular, became the objects on the road M-03 Kiev – Kharkiv-dovzhanskiy M-07 Kyiv-Kovel-Yagodin, M-12 stry-Ternopol-Kropiwnicki-Znamenka, M-14 Odessa – Melitopol-Novoazovsk (to Taganrog), M-18 Kharkiv-Simferopol-Alushta-Yalta, M-19 domanove-Kovel-Chernivtsi-Terebleche, N-21 – vystupovychi-Zhitomir-Mogilev-Podolsky, M-23 – Beregovo-Vinogradov-Velyka kopania, N-09, Mukachevo-Rakhiv-Bohorodchany-Ivano-Frankivsk-Rohatyn-Lviv, N-30 – Vasylivka-Berdiansk, N-13 Lviv-Sambir-Uzhgorod, N-31 – Dnipro-tsarychanka-Kobeliaky-Reshetylivka, N-25 – Horodysche-Rivne-Starokostiantyniv, H-07 Kyiv-Sumy-Yunakivka (to Kursk), G-51 – Merefa-Lozovaya-Pavlograd and others. At the expense of Ukravtodor borrowing this year will additionally perform repair work on the public roads of the state value.
150 THOUSAND JOBS + ACTIVIZATION OF BUSINESS LIFE
From warnings to the positives that the program can bring to the country even in such extreme conditions. We are talking not only about the task to improve social and transport infrastructure in Ukraine in the future, but also about certain social functions that the “Big building” will be completed here, and especially immediately after the end of the pandemic, in the period of post-traumatic recovery.
One of the main functions – the provision of Ukrainians with work. A predictive figure – 150 thousand new jobs that will be able to create under the programme. Now planning how to attract “Big building” people that are temporarily not occupied because of the quarantine, and reducing the time of work of the enterprises. Or the employees of those enterprises who are experiencing hard times. Coal mines, for example.
– How the program will affect the “feeling” and the business climate in some communities, especially in the so-called “depressive” regions?
The construction is across the country, so “difficult” regions, this really is an opportunity not only to provide employment but also to obtain economic benefits from road rehabilitation. Because each hryvnia, which is invested in road construction, provides 2-3 hryvnia GDP growth.
And then have a “global” purposes. UKRINFORM wrote about the purpose of the “Big building”, the ambitious tasks the country will have to carry out in the framework of its implementation. And what do you personally think is in charge?
My goal is to implement plans to rebuild 4000 kilometers of roads this year. Working on it, along with the head “Ukravtodor” Alexander Kubrakov, our teams, Government. I am convinced, do everything together.
– Same question about specific objects. There are hundreds of them. And, of course, there are those who believe the key to itself, and which will be particularly happy after the completion of construction?
I hope that I will be proud of hundreds of objects. In particular, such as concrete road N-31 Dnipro-tsarychanka-Kobeliaky-Reshetylivka; the construction of a highway across the Dnipro river in Zaporizhia, the construction of the southern bypass of the city centre; the capital repair of the highway M-12 stry-Ternopol-Kropiwnicki-Znamianka; capital repair of the road M-19 domanove-Kovel-Chernivtsi-Terebleche on the site of the Kovel-Lutsk… And especially I will be glad when they restored the roads in nikolayevshchina in the Donetsk and Lugansk regions.
A FULL UPGRADE. “PATCHWORK” REPAIR – NOT COMME IL FAUT
– I ask you to stay on the transparency task definitions in the framework of the program. How was formed the list of objects, as determined by the funding priorities and how will continue to monitor the application of funds and the quality of work performed?
Regarding the choice of roads. First, there is a method developed by the Institute of Gosdornii. It prioritizes construction and repairs. The basis of the process – assessment of road condition, load, and economic effects that will have the repair of a particular road section. It also includes social indicator – that is, the concrete roads that go to the supporting objects (schools, hospitals, etc.). Secondly, there is a routing principle – that is, the priority is not “patchy” repair of individual sections and a complete upgrade of the entire road on a particular route. Thirdly, we are talking about “prioritization” of work based on available resources. This year the priority is roads of international, national and regional significance. Further – territorial. For example, in the Kharkiv region, where the first three classes of roads, all more or less normal, already took the road of territorial significance – according to the plan for 2020. In summary: of subjectivity in the choice of roads to recovery was significantly less.
– And the objective process of selection of contractors? First of all, referring to the transparency of tender procedures. Conditions of carrying out of competitions and participation in them is standardized, or each region acts differently?
This year Ukravtodor introduced the model tender documents, which now operates in the mode of recommendations. It is based on a unified approach to working with contractors. For business – is a guarantee of transparent conditions for participation in the tender, open competition, and additional protection against “bidding Troll”. And for Ukravtodor – the ability to better control the quality of repairs and reliability of contractors. That is, standard tender documents – assurance that due to the small errors “tender trolls” will no longer be able to block the purchase, referring to the Antimonopoly Committee, as has happened before.
WORLD QUALITY – BY THE HANDS OF THE UKRAINIANS AND FOR THE BENEFIT OF THE STATE BUDGET
– Tell us about the level of interest from businesses in participating in state projects. What Ukrainian companies join the program? Is there a big rivalry during tenders? Are they a foreign company? After all, before the experts predicted that the market of road construction in Ukraine, for example, can go 3-4 the world’s leading corporations. Will not destroy any plans the current situation?
– Given the nature of the road sector, it is clear that we should not expect the participation of 20-30 companies in the tender for capital repairs of roads of international or national importance. However, even given this, competition in tenders in Ukraine – 3-4 companies per purchase is higher than, for example, in the United States or Canada, where many States compete for contracts only 2-3 companies. Now we are working to Ukravtodor to attract to tender (especially when it comes to large-scale projects – international roads or bridges) experienced international players, which guarantee the quality of work and assume full responsibility for the statement. For example, the tender for the completion of Zaporizhia bridge was won by Turkish company “Onur”, which implements several large-scale projects both in Turkey and in the international arena. That is, major investment in roads definitely attract the attention of international companies in Ukraine. However, for us it is particularly important that even the already mentioned company “Onur”, working in our country (by creating a subsidiary company), hire Ukrainian specialists and pays taxes in Ukraine.
– As the program “Large building” may serve to improve the quality of construction and road works in Ukraine? For example, whether to use open within the program site for testing on our open spaces the latest technologies?
Our task is to involve the best of company. This means not only the availability of qualified personnel, modern technology and knowledge of the latest technologies in road construction. Accordingly, we are talking about good quality, and guarantees many years of use of roads.