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Volodymyr Groysman: Establishment of a permanent road funding mechanism and decentralization of management will improve the quality of roads and repair planning
17.05.2016 | 17:17
INFORMATION AND COMMUNICATION DEPARTMENT OF THE SECRETARIAT OF THE CMU

The creation of a special Road Fund and decentralized management will afford to create a permanent mechanism of financing and planning of road repair activities, thereby ensuring proper road maintenance. This was stated by Prime Minister of Ukraine Volodymyr Groysman during his conversation with journalists at a laboratory and production facility of the InterChem in Odessa region.

"There is an idea, and it deserves to be implemented, - establishing a single Road Fund within the State Budget. It’s going to be a special Fund that is filled from import of petroleum products. They import, they pay customs dutiesthese are transferred to the Fund. Further, this resource is distributed on absolutely transparent and automatic basis to ensure that each village, each area, each region could get the required amount of funds depending on the amount of kilometers of roads," said Volodymyr Groysman.

"It means that we are creating a permanent tool of financing road repairs with resource inflows, while we devolve the management of these funds to the local level, to regional state administrations. That is the power and money. This, in complex, will enable to ensure appropriate quality [of roads – ed.] and effective planning of road activities", said the Prime Minister.

The State will also consolidate the resources for building of transport corridors all across the country, announced the Head of Government. "This issue requires more than a year, but it is crucial to develop a strategy of Ukrainian road development: not just to repair a section in a particular place, but it is necessary to understand first, second and fifth step, what road will be built, which points it will connect. These are the issues the Government is engaged in now," he said.

The Prime Minister stressed that the Government would consolidate efforts to carry out current repair of roads and to continue major repairs as had been planned.

Volodymyr Groysman noted that it is important to maintain roads appropriately, hence "over decades of use for personal financial gains" they occurred to be in a critical state. The Government is working to restore order in the road sector, he accentuated. So, there have already been launched major projects, in particular in Odessa region.

Moreover, the Prime Minister reminded that the regions possessed relevant funding for road repairs as a result of increased revenues due to fiscal decentralization. "Combining sources can provide necessary resource as co-financing", he said.

The Prime Minister checked the ongoing repair work on M28 Odessa – Yuzhny highway, as well as got familiarized with the operation and characteristics of portable truck scales.

 

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