Decentralization of roads and establishment of Road Fund: what it will mean for Ukraine

Today, January 1, introduced two innovations from the Ministry of infrastructure, decentralization of local roads and the establishment of the State road Fund.

120 thousand km of roads transferred to the jurisdiction of the regional authorities, according to ZIK. Will do construction, repairs and maintenance of roads. On the balance of “Ukravtodor” will be only 50 thousand km of roads of national importance.

Also decentralized and funding. Now, create a single national road Fund, which each year a budget will be otoslat fixed amounts of money. The road Fund will distribute the funds between regional budgets (35% of funding this year of 11.41 billion) and “Ukravtodor” (60% of funding 19.5 billion UAH in 2018). For the “Ukravtodor” is the obligation with the repayment of debts, which amount to $ 6 billion for the current year.

“The advantage of the road Fund that this will be protected financing. The second advantage, what happens decentralization “Ukravtodor” with the transfer not only costly, but also the financing in place. This is a significant step forward – now all the tenants can demand from local authorities the proper repairs,” commented the Minister of infrastructure Vladimir Omelian in an interview with “the Insider.”

Recall that in 2018, for the construction and repair of roads in the budget laid 46.7 billion UAH.

Decentralization of roads and establishment of Road Fund: what it will mean for Ukraine

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