Ukravtodor, the stated road agency of Ukraine, has announced plans to launch a tender process for the Lviv-Krakovets road PPP project.

The project, which will will connect Ukraine with Poland's existing highway infrastructure, will involve the construction and operation of a 84.4 km toll road between Lviv, Ukraine's seventh largest city and the Krakovets on the border with Poland. It is s designed to bypass the population centers of the northern part of area.

The existing Lviv-Krakovets - M10 road belongs to the international transport corridor â„–3 Berlin / Dresden-Wroclaw-Lviv-Kyiv.

The road concession will serve as a pilot project. If successful, it shall be used as a model for similar road projects in the future, including two potential future toll road concessions, which Ukravtodor has already identified.

According to Ukravtodor, the agency is currently adopting the PPP model in order to quicken the development of modern highways in the country. The agency expects that the concession approach will lessen the burden on the national budget, both during the construction and operation of the toll road and will improve the quality of road construction.