Why Wartime Makes Toll Roads Impossible in Ukraine.
Toll Roads in Ukraine
According to Novyny.live: The idea of introducing toll roads in Ukraine is currently under discussion, but the war presents major obstacles to making it happen. According to economist Oleh Ustenko, a former presidential advisor, the high level of risk means investors cannot commit to 30-year concession agreements like those common in Europe.
'No concession can function in Ukraine while the war is raging.' - Oleh Ustenko
In Ukraine, investors would need to recover their costs within 10 years or less, not the typical 30-year timeframe, which raises serious doubts about the viability of such projects. 'If your country has a high risk level, and we are a high-risk country because of the war,' Ustenko emphasizes. This leads to several questions about the economic sense of toll roads, including 'would anyone actually pay to drive on them?' the economist asks.
Challenges and Opportunities
Separately, Poland is considering a project to build a toll highway across Ukrainian territory, stretching from Krakowiec to Lviv. It is worth noting that Poland's A4 highway currently ends at the Korczowa-Krakowiec border crossing. As a result, the question of implementing toll roads in Ukraine remains unresolved and requires further discussion in light of current realities.
The introduction of toll roads in Ukraine could significantly transform the country's infrastructure, but executing such projects under present conditions is extremely difficult. The ongoing war and high risk levels deter potential investors, casting doubt on the economic feasibility of these initiatives. An analysis of the situation indicates that successfully implementing toll roads will require finding ways to reduce risks and ensure regional stability.
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