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DRAFTEastern Partnership

Transport Investment Plan Brussels, April 17, 2018

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Substantial investment by IFIs already made on the core TEN-T network in EaP region

Some countries are nearing completion of their networks (Azerbaijan and Georgia) but others will need long-term investment plans

To expedite the completion of the TEN-T core network the EC has requested an investment framework with priority activities to 2020 and 2030

The purpose of the exercise is to align around a common set of priorities but also to resource high quality preparation to improve readiness for implementation

Investment priorities will also include facilities to improve the performance of the network including border crossings, multi-modal facilities and road safety

Background

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The EaP core network consists of about 13,600 km of road, 13,200 km of rail, 12 airports and 13 ports

About 240 projects with an estimated value of Euro 47 billion have been reviewed to provide section specific information on cost estimates, traffic and condition etc.

Government and IFI financial data on sector expenditures, current commitments and forecast capital investment budgets have been collected

Projects have also been assessed according to their strategic relevance, policy criteria and readiness

Prioritization

Multimodal transport model updated to evaluate the network level priorities and to assess project level viability

The team has visited each country to discuss investment priorities in October/November, 2017 and followed up with our country office staff on key questions. This is the first full consultation on the main findings.

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Prioritization Process

• Linear projects are assessed using an updated multi-modal transport model to verify the economic viability of network priorities at a strategic level for EaP countries

Project assessments

• Preparation of draft priority list: Combines both quick wins and long-term projects that fit in the funding envelope

Project identification

• Previously identified projects are assessed in light of information provided by IFIs and the relevant national authorities

• Project-level proposals are checked for strategic fit, based on network priorities, covering the proposals’ economic, financial, social and environmental aspects.

• Preparation of funding envelops for the period 2018-2030: Includes potential sources of funding and an assessment of implementation capacity

Funding analysis

• Potential priorities not identified by the countries but emerging from the transport model

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Transport Model

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Road: 13,597 kmAir: 12 airports

TEN-T Network

Rail: 13,216 kmSea: 13 ports

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TEN-T Network: Road Conditions and Traffic Levels

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TEN-T Network: Railway Status and Freight Volume

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TEN-T Network: IWW/Port Freight Volumes and Air Traffic

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Implementation and Funding Capacity (2020 horizon)Consideration Armenia Azerbaijan Belarus Georgia Moldova Ukraine

FISCAL SPACEheadroom @ 60% D:GDP

in 2020 [€m]228 11,581 3,703 2,923 1,771 -

IMPLEMENTATION

Historical IFI disbursement ratios 9.1% 9.3% 13.5% 8.3% 4.0% 7.2%

Projected IFI disbursements

by 2020 [€m]215 643 95 458 76 409

BUDGET SPACEAvg. past transport spending

as % GDP in 20170.76% 0.80% 0.35% 2.85% 0.27% .81%

3 yr. average capex spend [€m] 75 280 163 384 19 750

Est. or stated budget space up

through 2020 [€m]228 853 491 4,337 57 2,997

BEST ESTIMATE [€m] 215 853 491 458 76 409

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Implementation and Funding Capacity (2030 horizon)Consideration Armenia Azerbaijan Belarus Georgia Moldova Ukraine

FISCAL SPACEheadroom @ 60% D:GDP

in 2030 [€m] 1,394 24,097 7,907 6,346 1,690 17,633

IMPLEMENTATION

Historical IFI disbursement ratios 9.1% 9.3% 13.5% 8.3% 4.0% 7.2%

Projected IFI disbursements by 2030 [€m] 1,207 3,614 534 2,572 430 2,301

BUDGET SPACEAvg. past transport spending

as % GDP in 2017 0.76% 0.80% 0.35% 2.85% 0.27% .81%

Est. or stated budget space up through 2030 [€m] 1,026 3,847 2,167 16,690 272 13,528

BEST ESTIMATE [€m] 1,207 3,847 2,167 2,572 430 2,301

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Benchmarks

DB Indicator (2018) EaPC Average Rank /190

Dealing with construction permits 84

Trading across borders 64

Enforcing contracts 43

Resolving insolvency 81

WGI Indicator (2016) EaPC Average Score /100

Control of corruption 34.3

Government effectiveness 44.5

Political Stability and Absence of Violence/Terrorism

28.4

Procuring Infrastructure PPPs (2018) EaPC Average Score /100

Preparation of PPPs 50.8

Procurement of PPPs 57.3

PPP contract management 38

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Priority Projects in Armenia

AM/ROAD/3: M7 Vanadzor - Gyumri - Akhurik, Vanadzor-Guimri section (not TEN-T)Finance: Potential IFIsInvestment: €50.8mEIRR: 6%

ROAD LONG-TERM

AM/ROAD/2: North-South Road Corridor: Gyumri-Bavra (Tranche 5)Finance: EIB consideringInvestment: €41mEIRR: 8%

ROAD LONG-TERM

BLACK SPOTSSyunik Region (2017)Accidents: 169Fatalities: 22Injuries: 247

Kapan (2017)Accidents: 70Fatalities: 6Injuries: 85

Meghri (2017)Accidents: 15Fatalities: 1Injuries: 20

Goris (2017)Accidents: 51Fatalities: 4Injuries: 81

Sisian (2017)Accidents: 33Fatalities: 11Injuries: 61

Syunik section of M2/H45 (southern road rehabilitation) Finance: Potential IFIsInvestment: €50m - €200m (potential for segmentation of rehabilitation work)EIRR: 30%+ (similar projects used as a benchmark)

ROAD LONG-TERM

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Trade with Russia

Traffic to TbilisiCross-borderConnectivity

IN FO

CUS

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Armenia: Key Financing and Implementation Aspects

Key implementation :• Ongoing works on two main parts of TEN-T• Possible need to rethink the TEN-T and include the M7 road

to create a N-S corridor compatible with Georgian network• Weak coordination and project implementation capacity• Urgent need for project prioritization

Priorities for 2020• Completion of on-going works• Developing design documents for identified priorities, and• Developing prioritized transport network

Key funding aspects:• Decreasing year on year spending on transport• Strong fiscal constraints – IFIs have indicated no new lending

prior to 2020• Government spending on CAPEX is small -6-10% of total

budget• Key priorities on core TEN-T need high capex

Priorities to 2030:• Limited program to 2030 on core network• Need to refocus effort on non-core network• Reassess viability of some proposed projects i.e. different

design standards

TOTAL INVESTMENT AMOUNT

SPENDING SPACE

€0.5bn€1.2bn

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Priority Projects in Azerbaijan

AZ/RAIL/1: East-West railways: remaining signaling, telecommunications and electrificationFinance: Potential IFIsInvestment: €328mEIRR: 11.7%

RAIL LONG-TERM

AZ/LC/1: Alyat Free Trade Zone and logistics centerFinance: PPPInvestment: €410mEIRR: 5.3% (FS ongoing)

LOGISTICS LONG-TERM

AZ/LC/2: Creation of Logistics CentersFinance: PPPInvestment: €369mEIRR: 20%

LOGISTICS LONG-TERM

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Logistics Centers

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Create an enabling environment for transit trade• Strengthen the role of the country as a regional

logistics and trade hub

• Complete the ongoing infrastructure investments along the east-west and north-south corridors

• Improve logistics services

Higher value addition to transit trade• Increase the role of Baku as a regional trade

center

• Established export-orientated productions

• Develop logistics centers

Incentives for logistics and trade• Increase private sector participation in logistics

Targets

Complete ongoing investments by 2021/22• Roads and railways along the Core TEN-T network

Focus on corridor management and logistics• Improve Logistics Performance Index (LPI)

score from 125 to 30 by 2020

• Focus upon corridor management

• Develop Baku’s role as a regional trade center

• Improve intermodal terminals

• Develop ICT systems to link transport system operators and improve the tracking of freight

• Harmonizing national laws and regulations with those of the EU

• Establish Alyat as a modern green port with a free-trade zone

• Harmonize regulations and laws with EU standards

• Create incentives for private sector participation in logistics and corridor management/operations

Focus on vocational training

Priorities in Azerbaijan

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Azerbaijan: Key Financing and Implementation Aspects

Key implementation aspects:• Advanced level of implementation of core and

comprehensive TEN-T network• Role of MoT is currently being defined; currently

responsibility on strategy and priorities is split between agencies

Priorities for 2020• Focus on improving railways efficiency and implementation of

ongoing projects• Focus on logistics activities (national priority to reach top 30

LPI by 2020, from 125)

Key funding aspects:• Focus on attracting private sector: law on PPP under

preparation• Low debt levels• Substantial IFI portfolio, largest in EaP region• Going forward more constraints on budget due to falling oil

prices.

Priorities for 2030:• Focus on attracting private sector participation in logistics

activities

TOTAL INVESTMENT AMOUNT

SPENDING SPACE

€2bn€3.8bn

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Priority Projects in Belarus: Railways

BY/RAIL/2: Electrification of Zhlobin - Kalinkovichi - Barbarov(143km) Railway TrackFinance: EIB/EBRD Investment: €79.5mEIRR: 13%

RAIL LONG-TERM

BY/RAIL/1: Modernization of the Contact Network at Zhdanovichi-Molodechno Section of Minsk RegionFinance: EIB/EBRD Investment: €35.3mEIRR: 13%

RAIL QUICK WIN

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Priority Projects in Belarus: Roads

BY/ROAD/3: Road M-7/ E 28 Minsk – Oshmyany – Border of the Republic of Lithuania (Kamenny Log), km 57.7 – km 148.752Finance: Possible EIBInvestment: €82mEIRR: 15.6%

ROAD

BY/ROAD/10: ITS for M-1 / E30 on sections Brest -Baranowichi and Minsk - the Border of Russian Federation Finance: App. for NDPTL GrantInvestment: €10.4mEIRR: 32.3%

ROAD QUICK WIN

BY/ROAD/11: Reconstruction of the Road Border Crossing Point "Kamenny Log" (Lithuania - Belarus) Finance: Possible EIBInvestment: €23.8mEIRR: 13.7%

ROAD QUICK WIN

LONG-TERM

BY/ROAD/6 & 7: Sections of M-10 Border of Russian Federation (Selische) – Gomel – Kobrin (km 0-27, km 193.2-320.3)Finance: Likely IFIsInvestment: €305mEIRR: 9.5%

ROAD LONG-TERMBY/ROAD/4: Road M-10 Border of Russian Federation (Selische) – Gomel – Kobrin, km 109.9 – km 195.15Finance: PPP (EBRD Structuring)Investment: €207.5mEIRR: 12%

ROAD LONG-TERM

BY/ROAD/9: Pedestrian crossings on M-1Finance: App. for NDPTL GrantInvestment: €0.3mEIRR: 27.5%

ROAD QUICK WIN

BY/ROAD/5: M-8/E 95 Border of Russian Federation (Ezerische) – Vitebsk – Gomel – Border of Ukraine (Novaya Guta), km 87.9 – km 151.0Finance: Likely IFIsInvestment: €139.4mEIRR: 10.1%

ROAD LONG-TERM

BY/ROAD/2 & 8: Road R-20 Vitebsk - Polotsk - Border of LatviaFinance: Likely IFIsInvestment: €155.8mEIRR: 23%

ROAD LONG-TERM

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Inland Waterways

BY/IWW/1: Restoration of the International Waterway E40 in Belarus

The proposed E40 water way will connect the Baltic and Black seas through the Vistula in Poland, the Pripyat in

Belarus and the Dnieper in Ukraine. The project will require an extensive feasibility study but improvement of

the Pripyat in Belarus has not been prioritized in this exercise because:

• Traffic volumes are low and there is limited potential for diversion (but there is limited data)

• The route is environmentally sensitive and would require a new canal to be built in Poland and investments

in Ukraine on the Dnieper

• There are alternative modes of transport on this route including a rail line and a road link (GO highway)

IN FO

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Kyiv Lock and Pool Above• Lock at high risk of failure• Optimum traffic flow is hindered

Kaniv Lock and Pool Above• Individual systems present a

medium risk of failure• Optimum traffic flow is hindered

Kremenchuk Lock and Pool Above• Lock at high risk of failure• Optimum traffic flow is hindered

Kamenskye Lock and Pool Above• Lock at high risk of failure• River not navigable

Zaporijjya Lock and Pool Above• Lock at high risk of failure• Optimum traffic flow is hindered

Kahovka Lock and Pool Above• Lock at high risk of failure• Optimum traffic flow is hindered

River/lock assessment: 2017 Royal HaskoningDHV/EBRD Sustainable Transport TA Programme

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Belarus: Key Financing and Implementation Aspects

Key implementation aspects:• Advanced level of implementation of TEN-T network• Most key priorities have preparatory work• Good approaches to maintenance of existing assets• Good coordination from relevant authorities

Priorities for 2020:• Large investments in logistics centers: these are under-

utilized, need to improve efficiency (TA)• Implement existing pipeline of projects

Key funding aspects:• Significant road fund with good spending on maintenance• Low budget spending on transport although no visibility of

railway spending• No major lending constraints

Priorities for 2030:• Undertake comprehensive FS for waterways corridor• Work on attracting PPP for infrastructure finance

TOTAL INVESTMENT AMOUNT

SPENDING SPACE

€1.2bn€2.2bn

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Priority Projects in Georgia: Logistics

GE/LC/1: Tbilisi Kumisi Logistic CentreFinance: EIB ProposedInvestment: €78.3mEIRR: 21%

LOGISTICS LONG-TERM

GE/LC/2: Logistic Center in KutaisiFinance: ADB ProposedInvestment: €61.5mEIRR: 27%

LOGISTICS LONG-TERM

GE/LC/3: Cargo Terminal in Kutaisi AirportFinance: Likely PPPInvestment: €61.5mEIRR: 20%

LOGISTICS LONG-TERM

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ROADGE/ROAD/8: Sadakhlo Friendship BridgeFinance: EBRDInvestment: €5.7mEIRR: 15%

QUICK WIN

Priority Projects in Georgia: Roads

GE/ROAD/5: Rehabilitation of Grigoleti – Poti RoadFinance: EIB ProposedInvestment: €123mEIRR: 10%

ROAD LONG-TERM

GE/ROAD/6: Tbilisi BypassFinance: ADB ProposedInvestment: €287mEIRR: 18%

ROAD LONG-TERM

GE/ROAD/1: East-West Highway: Section Chumateleti -Argveta of E60 Finance: EIB/EBRD/WB/JICAInvestment: €779mEIRR: 13.6%

ROAD LONG-TERM

GE/ROAD/2: Rustavi - Red Bridge HighwayFinance: EIB ProposedInvestment: €102.5mEIRR: 16.2

ROAD LONG-TERMGE/ROAD/3: Construction of new road Batumi Bypass - Sarpi(Border of Turkey)Finance: EIB/EBRD/WB/JICAInvestment: €90.2mEIRR: 18%

ROAD LONG-TERM

GE/ROAD/4: Rehabilitation of Grigoleti – CholoqiFinance: EIBInvestment: €73.8mEIRR: 12.3%

ROAD LONG-TERM

GE/ROAD/7: Sadakhlo-AlgetiFinance: EIBInvestment: €73.8mEIRR: 15.2%

ROAD LONG-TERM

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Logistics Centers

Like Azerbaijan, Georgia is at an advanced stage of TEN-T implementation.Priorities in Georgia• Promotion of multi-modality (rail services are at a

disadvantage when compared with road transport)• Optimization logistics network and ensure ICT

integration• Liberalization of rail transport• Focus on vocational trainingChallenges: • Ports lacks reliability• Road border-crossing points are bottlenecks• Port costs are unreasonably high

IN FO

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Georgia: Key Financing and Implementation Aspects

Key implementation aspects:• Advanced level of implementation of TEN-T network

• Most of key priorities have preparatory work

• Very good coordination from relevant authorities

Priorities for 2020:• Completion of EW highway

• Future activities to focus on improved logistics and attracting

private sector

Key funding aspects:• Government forecast a large increase in transport spending to

11% of GDP??

• A lot of resources to accommodate E-W highway

• Debt levels good and no major constraints on fiscal space

Priorities for 2030:• Substantial 2030 program, needs good preparation

• Focus on logistics will require good cooperation with private

sector

TOTAL INVESTMENT AMOUNTSPENDING SPACE€2.4bn€2.5bn

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Priority Projects in Moldova: Roads and Ports

ML/ROAD/4: Chisinau Ring Highway (section 2-4)Finance: IFIsInvestment: €41mEIRR: 16.6%

ROADS LONG-TERM

Implementation of Weight in Motion Finance: IFIs/National Budget Investment: €16.4mEIRR: 59.5%

ROADS QUICK WINML/ROAD/2: M-14 - Section Balti - Criva (rehabilitation)Finance: IFIsInvestment: €128.7mEIRR: 7.6%

ROADS LONG-TERM

ML/ROAD/3: M-21 Chisinau - Dubasari - Goianul Nou - Ukrainian Border (rehabilitation)Finance: IFIsInvestment: €47.6mEIRR: 9.7%

ROADS LONG-TERM

ML/ROAD/6: M14 Chisinau – Kuciurgan (UA)Finance: IFIsInvestment: €66.4mEIRR: 14%

ROADS LONG-TERM

ML/PORT/1: Giurgiulesti Port Infrastructure Finance: IFIs/National Budget Investment: €3.3mEIRR: 11.2%

PORT QUICK WIN

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Southern Railways

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Giurgiulesti – Abaclia Rail Link

• Not yet part of the TEN-T network, despite having the heaviest flow of rail traffic in Moldova at 5,018 ton/day

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Moldova: Key Financing and Implementation Aspects

Key implementation aspects:• Most on-going investment and preparation work not on the

core TEN-T network• There is a need to rethink the TEN-T network• Poor implementation performance is key constraint to new

investment

Priorities for 2020:• Key priority for 2020 is a focus on project preparation and

project implementation• Currently developments on links to Transnistria may play a

key role in project prioritization going forward

Key funding aspects:• Lowest disbursement ration in EaP of IFI loans• Lowest spending on transport in the EaP region• Deteriorating fiscal situation and stagnating

Priorities to 2030:• Rethink prioritization of rail network related to core

network• Start implementation of routes to the North and East to

connect with Ukraine

TOTAL INVESTMENT AMOUNTSPENDING SPACE€0.4bn€0.4bn

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Priority Projects in Ukraine: Rail, IWW, Ports and Airports

UKR/IWW/1: Dnipro Locks Reconstruction as part of the Dnipro Development InitiativeFinance: Possible EIBInvestment: €57.4mEIRR: 47%

IWW QUICK WIN

UKR/PORT/1 & 3: Dredging/Berth Reconstruction in Yuzhniy PortFinance: National Budget/PPP Investment: €284.5mEIRR: 4% (further analysis needed)

PORT LONG-TERM

UKR/RAIL/4: Increase of the Train Handling Capacity within Section Hrebinka – PoltavaFinance: Likely IFIsInvestment: €24.6mEIRR: 30%

RAIL LONG-TERM

UKR/RAIL/3: Zhytomyr - Vapnyarka rail lineFinance: Likely IFIsInvestment: €205mEIRR: 22%

RAIL LONG-TERM

Second Runway at Odessa Airport Finance: Likely IFIs Investment: €98.4mEIRR: 36%

AIR LONG-TERM

UKR/RAIL/2: Implementation of Railway Service Mukachevo – Chop –Zahony (Hungary)/Chierna-nad-Tisoj (Slovakia)Finance: Possible EIBInvestment: €13.3mEIRR: 47%

RAIL QUICK WIN

UKR/PORT/3: Berth Reconstruction in Chernomorsk Port Finance: PPP Investment: €69.7mEIRR: 9%

PORT LONG-TERM

UKR/RAIL/1: Modernization of the Railway Gauge 1435 mm on the Section Kovel – Yagodyn – State Border with Further ElectrificationFinance: Possible EIBInvestment: €41mEIRR: 19%

RAIL QUICK WIN

UKR/PORT/4: Improve railway access to Odessa and Mykolaiv PortsFinance: Likely IFIsInvestment: €16.4mEIRR: 11.6%

PORT QUICK WIN

UKR/RAIL/5: Electrification of the Railway Section Berdychiv – Korosten – BerezhestFinance: Discussions with EIBInvestment: €135.4mEIRR: 16%

RAIL LONG-TERM

UKR/PORT/2: Construction of Berth No. 8 of Mykolaiv Sea PortFinance: EIBInvestment: €9mEIRR: 10%

PORT QUICK WIN

UKR/PORT/1: Yuzhny State Stevedoring Company ConcessionFinance: PPP

PORT QUICK WINUKR/PORT/3: Chornomorsk State Stevedoring Company ConcessionFinance: PPP

PORT QUICK WIN

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Priority Projects in Ukraine: Road

Implementation of E-tolling, weight in motion and automatic speed enforcementFinance: Likely PPP Investment: €41mEIRR: 118.9%

ROAD QUICK WIN

UKR/ROAD/9: M-03 Chutove – KharkivFinance: WB Investment: €191.1mEIRR: 16.5%

ROAD LONG-TERM

UKR/ROAD/5: H-02 Lviv – TernopilFinance: Potential PPP Investment: €133m (assuming rehabilitation)EIRR: 14%

ROAD LONG-TERM

UKR/ROAD/4: H-11 Dnipro – MykolaivFinance: IFIsInvestment: €321m (assuming rehabilitation)EIRR: 8.5%

ROAD LONG-TERM

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Go Highway

IN FO

CUS

Currently the GO highway serves mainly local traffic. While the highway is well-used, only 10 trucks per day traverse the entire road from Odessa to Krakovets. The optimum strategy for the improvement of this highway will probably be a combination of capacity expansion on key parts of the route, some have been prioritized here, but also the rehabilitation of the existing road where returns will be higher. An on-going feasibility study will identify the exact strategy.

Capacity Improvement to Category 1 • EIRR: 2.4%

Rehabilitation of Existing Road• EIRR: 12%

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Ukraine: Key Financing and Implementation Aspects

Key implementation aspects:• Good level of completion of core TEN-T road network (main

T) – maintenance serious concern• Rail network generally better managed• Poor absorptive capacity• Government priorities change regularly, priorities not

technically informed, master Plan to start soon

Priorities for 2020:• Focus on implementation of 2020 priorities – approx. Eur 1.8

billion• Address poor implementation performance – undisbursed

balances exceed Euro 1 Billion• Increase spending on project preparation and

implementation• Implement network efficiency quick wins• To prepare and approve the transport master plan

Key funding aspects:• Currently constrained fiscal space but projected to improve• Road fund to begin in 2018 will bring additional resources to

the road sector• Second lowest disbursement ratio of IFI loans in EaP region• Projecting big increase in transport budget for 2018 and

doubling of CAPEX

Priorities for 2030:• Increase efforts to attract private sector capital• Focus on linking Odessa with Europe – through GO Highway• Review design standards to insure cost effective use of

resources

TOTAL INVESTMENT AMOUNT

SPENDING SPACE €2.7bn€2.3bn

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Network efficiency

TOW

ARDS

BET

TER

Training: Private operators rate the reliability of journey times as paramount. Professional logistics operators are the key.

Tolling systems: Provide much needed revenue to the sector, future revenues can be securitized to raise private finance for investments

Automatic speed enforcement: Cutting speed saves lives

Weight control systems: Automated systems can increase revenues, limit corruption and protect key infrastructure assets

Intelligent highways: provide information to manage journey times to avoid congestion, limit border crossing times, provide emergency response, link to multi-modal systems

Weight in Motion

E-tolling and automatic speed enforcement

• Very large economic returns

• Initial investments are relatively modest

• Private sector can finance investments and subsequent operations

• Payback periods are often between 1 and 5 years infrastructure

• Possibility to generate revenues

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Absorptive capacity

TOW

ARDS

BET

TER

0%

2%

4%

6%

8%

10%

12%

14%

16%

Armenia Azerbaijan Belarus Georgia Moldova,Republic of

Ukraine

Ave

rage

Dis

burs

emen

t Rat

io

DISBURSEMENT RATIOS BY IFIS IN EAPCOUNTRIES

EBRD EIB WB ADB Wgt. Avg.

Key issues include:• Inadequate project preparation• Weak procurement systems• Weak local industry• Lack of transparence• Corruption

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Private Sector

Participation

TOW

ARDS

BET

TER

- 1 2 3 4

ArmeniaAzerbaijan

BelarusGeorgia

Republic of MoldovaUkraine

Number of PPP Transactions by Country and Sector Since Yr. 2000

RoadsRailwaysPortsAirports

Airports4

Ports5

Railways2

Roads0

Treatment plant

1

Water Utility

7

Electricity48

ICT17

Natural Gas14

# of PPP Transactions in EAP countries since yr. 2000

Airports409

Ports675

Railways579

Roads-

Treatment …

Water Utility

637 Electricity

4,772

ICT17,427

Natural Gas

3,448

US$ mil. PPP Transactions in EAP countries since yr. 2000

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Maintenance

TOW

ARDS

BET

TER

This presentation focuses on prioritization of new investments but the first priority should always be on the maintenance of existing assets

• Investment in maintenance will always deliver the highest economic returns – for every $ spent on maintenance at least $3 will be saved in vehicle operating costs

• Countries should invest in good asset management systems and regular data collection to measure condition of infrastructure assets

• Good maintenance will save lives, reduce emissions and improve the public and investor perception of the transport system

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Project Preparation

TOW

ARDS

BET

TER

The key recommendation emerging from this study is that more attention and resources should be given to high quality project preparation and implementation

The results from this work suggest that there is weak pipeline of projects and implementation of existing projects is slow

We would recommend setting up a multi-agency fund to finance this work with an agreed level of counterpart funding from government.

The fund would finance preparation and implementation activities associated with the agreed investment plan contained in this document. Specifically it would:• Finance preparation of FS, detailed engineering, social and environmental work and bidding

documents• Finance support to implementing agencies to effectively manage the preparation process• Finance support to implementing agencies to effectively implement the projects

0

2

4

6

8

10

12

14

Armenia Azerbaijan Belarus Georgia Moldova Ukraine

Number of Identified Feasibility Studies

Ongoing analysis of BCP’s

Verification of key model parameters and

deeper model assessments

No data on large bilaterals including China and Russia

Additional prioritization processes in particular

for Ukraine

Additional railways data needed for Ukraine and

BelarusFurther consultation with the countries

Outstanding issues

Thank you!