4 June 2021

Project | Roads of Mykolaiv region: the law that levels asphalt

Mykolaiv is an important industrial and transport center of Ukraine with a developed port economy. However, large volumes of freight traffic negatively affect the city’s infrastructure. At the same time, revenues to the city budget do not meet the needs of its reconstruction and development. The project aims to increase revenues to the local budget from the activities of port companies in Ukrainian cities to solve this problem.

Road infrastructure of the city of Mykolaiv

Mykolaiv by European standards is a fairly young city, which was founded in 1789 as a shipbuilding city. Today it is one of the most important industrial, transport, scientific and cultural centers of southern Ukraine.

Mykolaiv has a unique geographical position in the Northern Black Sea coast at the confluence of 2 Southern Bug and Ingul rivers. The coastline of the city is 137 km, 50  km of which border with the Black Sea.

Moreover, the city’s transport complex remains its strategic branch, which has an extensive transport network and a developed port economy. Also, three seaports and one river port operate in the city.

In addition, the total volume of cargo service by companies operating in the seaports of Mykolayiv is steadily increasing and averages 35 million tons per year.

On the other hand, 60% of these freights are transported by large vehicles by the city’s streets which leads to the annual increase in traffic by highways of the city.

About 500,000 cars annually transport goods on the city’s highways. This causes damage to the city’s road infrastructure due to the destruction caused by heavy vehicles. It also has a negative impact on road safety and the level of environmental pollution.

According to calculations, the general need for financing for the city’s road infrastructure reconstruction is 4,6 billion UAH.

At the same time, the income to the city’s budget in 2020 was 4 billion UAH. The income to the city’s budget from the activity of ports and port terminals was 237,7 million UAH or 5.9% of the general income.

City infrastructure reconstruction project

That is why the project aims to increase revenues to the local budget from the activities of port companies in Ukrainian cities.

The project contains proposals to improve the budget legislation. Namely, proposals to introduce amendments aimed to increase the amount of income to the city’s budget from the net profit of the Ukrainian seaports administration and port operators of state ownership. This will give the opportunity to finance port infrastructure.

The new budget revenues will be used to finance construction, reconstruction, and repair:

  • highways;
  • bridges;
  • overpasses;
  • trestle;
  • road junction;
  • bypass roads and other port infrastructure facilities.

Project results

Making these changes to the budget legislation will significantly contribute to the social and economic development of the port cities.

Cities will receive renewed infrastructure, an extensive network of bypass roads, restored bridges, and modernized overpasses. Moreover, the city’s infrastructure will be provided with modern, safe, and fast road connections, which will create new business opportunities and have a positive impact on the environment.

In addition, the project will increase the financial capacity of local communities, regions, and positively affect the reputation of the port industry.

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