Repair of roads will benefit the Ukrainian economy - Bloomberg

28 November 2017, 03:05 | Business
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The Ukrainian economy is waited with a certain stimulation against the backdrop of how politicians are going to restore the system of roads that fell into decay after the collapse of the USSR a quarter of a century ago. About this writes Bloomberg. Ukrainian officials, in particular Prime Minister Vladimir Groisman, are trying to attract voters before the 2019 vote, allocating unprecedented amounts for road repairs, which the latest Global Competitiveness Report called the worst in Europe. Investments will amount to 1.4% of Ukraine's GDP, which is four times more than Kiev spent during the preparation for the Euro 2012 championship,. The publication is quoted by Ukrainian political scientist Vladimir Fesenko, who believes that all this "resembles a PR". However, the McKinsey Global Institute believes that every dollar spent on infrastructure can, in the long run, bring an additional 20 cents to the economy by increasing productivity. "This is a good investment. The infrastructure has a high multiplier, and in the regions roads are a key infrastructure, "said Timofey Milovanov, a member of the National Bank's Council and a professor at the University of Pittsburgh. In his opinion, if effective quality control is provided, then the campaign to restore roads will end "not just PR".

In "Ukravtodor" say that at the beginning of this year, 95% of the roads in the country were in poor condition. Since 2015, only 3600 kilometers of roads have been repaired, and this is only 1.3% of the total. Finance help. UA: Annually the cost of repair works on the roads of Ukraine is estimated at 60 billion hryvnia. According to the quality rating of the roads, The World Economic Forum, Ukraine ranks 137 out of 144.

Original article: Repair of roads will benefit the Ukrainian economy - Bloomberg.




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