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Pushkarenko Arsenii, People’s Deputy of Ukraine
The President Big Construction program rekindles confidence that the state can tackle large-scale strategic tasks. Zaporizhzhya and Kremenchug Bridges, dozens of completed long-term construction projects across the country, thousands of kilometers of roads, hospitals, schools, kindergartens, stadiums. All of the above represent success stories.
Our task as people’s deputies is to create the conditions for the successful implementation of the program. The time has come for another long-term construction project and, more specifically, the Kiev Bypass. I will tell you why there is no betrayal and why it will no longer be possible to create a hype around the criticism of the Kiev Bypass.
Traffic jams in Kiev bring in up to 260 billion UAH each year for cities and countries
The absence of a full-fledged bypass road in the capital of Ukraine is a historic mistake. Today, residents and all other road users face the consequences of this mistake. Transit road transport, aimed at going from the left bank of the city to the right bank or vice versa, requires transit through the capital due to the shortage of bridges over the Dnipro river. And the absence of a bypass means the entrance to the city center.
Up to 40% of transport in Kiev is public transport. In terms of traffic jams, the Ukrainian capital took 7th place in the Tom-Tom world ranking. On average, Kiev drivers spend around 9.5 days or 230 hours in traffic jams per year. In monetary terms, the average loss due to traffic jams for a single driver is around $ 490 per year. In total, according to various estimates, Kiev loses 190-260 billion UAH per year due to traffic jams. And that’s a lot of money.
The largest metropolitan area in the country without comfortable communication with the city center
According to various estimates, the population of the Kyiv metropolitan area ranges from 4.2 to 5.5 million. The modern layout of the capital is designed for 900,000 cars. Now that number in the city fluctuates between 1.2 and 1.5 million. Without a bypass road, suburban dwellers cannot comfortably use the region’s basic infrastructure: Zhuliany and Boryspil airports.
Conversations about an alternative ring road / ring / road in Kiev have been going on for several decades. It is not surprising that any new initiative in this direction is seen as skeptical. The scale of the project and the complexity of its implementation seemed overwhelming to Ukraine. Nevertheless, the eyes are afraid, but the hands do the job. Last year, the state began the decade-long awaited construction. The design of the first sections of the road has started. There are plans to build a 150-kilometer half-ring around the capital. It will be a highway with more than 20 transport interchanges and a new bridge over the Dnipro River.
How to find funds for one of the largest infrastructure projects of independent Ukraine?
The estimated cost of the project reaches 85 billion UAH, but these are only preliminary calculations. Even now, this amount is comparable to Ukravtodor’s annual budget. By focusing exclusively on budgetary funds, we risk stopping the restoration of roads and bridges in other areas. We cannot allow that.
On the other hand, postponing the implementation of the project amounts to slowing down the growth of the economy of the capital and of the country as a whole. The solution is funds from international investors. However, there is a problem. Current legislation, construction norms and standards, prices, all these things prevent a large construction company with a strong investor from entering the Ukrainian market. In turn, international investors expect from us an international competition with transparent conditions of participation and according to recognized international rules.
Why Prozorro?
Nowadays, some politicians try to manipulate this subject by merging the Prozorro system with the Ukrainian law “on public procurement”, but it is different. In one case, it is an IT product that can really be improved and in which new operating mechanisms can be implemented. And in another case, it is a law with specific requirements and procedures that are designed exclusively for the budgetary sphere. We all believe in Prozorro and are convinced that there will be opportunities for new forms of international contracts, but these changes will take years.
The Kiev bypass road project is running out of time. Since 2008, 11 memorandums have been signed on the Kiev bypass road project with companies from 6 different countries, such as China, Germany, Lithuania, France, Turkey and Spain. However, large international companies do not want to work on the unreformed Ukrainian road market. Their main requirement is an open international competition for international standards FIDIC, CIPS, etc.
What will happen to the tender for the construction of the Kiev bypass road?
On June 3, the Verkhovna Rada of Ukraine adopted Bill 5309, which amended the legislation accordingly. Immediately after that, a wave of criticism descended on Parliament. But let’s accept the reality of things.
First, the amendment does not override the provisions of Ukrainian law and all regulations. State bodies (National Anti-Corruption Office of Ukraine, National Agency for the Prevention of Corruption, Prosecutor’s Office Specialized in Anti-Corruption, State Treasury Service of Ukraine) continue to work and follow this story at all stages.
Second, Prozorro is an electronic procurement system. It is not a panacea. It has its own problems and drawbacks. The cases of division of road sections by 40 meters or tender trolls clearly confirm this.
Why do I believe in the success of this project? For me, the indicator is the reaction of big business. Not so long ago, Ukraine’s largest investment company Dragon Capital became the owner of an office and logistics complex with an area of ​​more than 100 sqm. in the village of Belogorodka. It is located 6 km from the future Kiev bypass road, between the M-06 Kiev – Chop and M-05 Kiev – Odessa highways. By the way, this section is already being designed. For me, this is a signal that construction is about to begin.
Third, our goal is to create a new practice of competitive selection process for entrepreneurs, taking into account international norms and standards. And the selection criteria should not be just the price, but the entrepreneur’s ability to attract funding.
The Kiev bypass road must not become long-term new construction through unreliable contractor or underfunding. The country should have comfortable routes for transit transport and additional investments, a powerful stimulus for the economy.
After changing the legislation, the Verkhovna Rada of Ukraine passes the baton to the Ministry of InfrastructureUkraine. In turn, the Ministry of Infrastructure with the help of the best consultants in the world must develop a new flawless and transparent tender for international companies. Applicants will need experience in implementing large-scale infrastructure projects and the most cost-effective mechanism to attract funds for the project.
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