agribusiness, Black Sea, Black Sea commerce, Black Sea trade, Construction contracts., construction funding, construction project, Eastern Ukraine, economic development, economic development policy, energy, energy efficiency, finance, funding, high speed rail, infrastructure, Investments, loans, modernization, Odessa-Kyiv-Lviv route, pipeline tolls, pipelines, ports, public-private partnerships, Railways, reforms, Russia, tolls, trade, transport, Ukraine, Volodymyr Zelenskyy, WBG, World Bank
Ukraine is apparently trying to develop infrastructure to reduce dependency on Russian pipeline transit fee-tolls and replace them with road, railroad, port tolls, though it’s not explicitly stated. A proposed high speed rail connection with Europe would help tourism, business, and European integration. War undermines infrastructure, transportation, trade, business and tourism. Nord Stream 2 will reduce Russian gas transit, meaning that the gas transit fee-toll revenues are reduced.
Is Ukraine trying to diversity funding, or will this World Bank funding replace funding from China or elsewhere? These are very basic questions that should be easy to answer, it simply takes time, which we lack. If each second of the day were actually an hour, we would easily and happily do a lot more investigation of this topic.
Government and infrastructure funding must come from somewhere, contrary to what has become popular belief.
On Friday, February 18, 2022, it was reported that “a fireball was seen lighting up the sky after an international oil pipeline running through the key rebel-held city of Luhansk blew up. The blast rocked the Druzhba pipeline which runs from Russia to various points in eastern and central Europe.” See: “Putin’s ‘false flag’ refugee crisis that is set to spark war in Ukraine: 700,000 civilians arrive in tent cities after Pro-Russian separatists ordered them out and staged ‘fake’ bomb attacks – as Biden warns invasion ‘in days’ will target Kiev” By Jack Wright and Jack Newman and Will Stewart for MailOnline 08:07 19 Feb 2022, updated 18:32 19 Feb 2022 https://archive.md/GnMhS
“The World Bank is like a cooperative, made up of 189 member countries. These member countries, or shareholders, are represented by a Board of Governors, who are the ultimate policymakers at the World Bank. Generally, the governors are member countries’ ministers of finance or ministers of development. They meet once a year at the Annual Meetings of the Boards of Governors of the World Bank Group and the International Monetary Fund.”
https://www.worldbank.org/en/about/leadership Voting shares by country: https://thedocs.worldbank.org/en/doc/a16374a6cee037e274c5e932bf9f88c6-0330032021/original/IBRDCountryVotingTable.pdf
“World Bank Group President David Malpass met with Volodymyr Zelenskyy, President of Ukraine MUNICH, February 19 – Today, World Bank Group President David Malpass met with Volodymyr Zelenskyy, President of Ukraine.
President Malpass reaffirmed to President Zelenskyy the World Bank Group’s (WBG) support for the people of Ukraine and its economy, both for its short and long-term financing needs. President Malpass noted the resilience of the Ukrainian economy given major economic and security challenges.
President Malpass and President Zelenskyy discussed the immense financial costs to Ukraine from the current crisis and rising energy prices, as well as costs to Russia and the region from likely reductions in investments, trade, and vital Black Sea commerce.
President Malpass affirmed that the World Bank is preparing quick disbursing budget support – for Board consideration by the end of March – of up to $350 million to support ongoing reforms. This would be followed by further budget support and additional reforms, including in the energy and climate areas. President Malpass mentioned strong interest by development partners to coordinate support with the World Bank.
President Malpass and President Zelenskyy also discussed the World Bank’s robust pipeline of planned projects for Ukraine, including energy efficiency, infrastructure, railways, and strengthening the economy and job opportunities in eastern Ukraine. President Malpass noted that the private sector will continue to be a strong pillar of the WBG’s program in Ukraine, particularly to support ongoing reforms, municipalities, agribusiness, and public-private partnerships.
President Malpass and President Zelenskyy discussed close coordination with other development partners. President Malpass also encouraged an EU-led conference of donors and confirmed the World Bank’s participation in the upcoming Ukraine reform conference in Lugano”. https://www.worldbank.org/en/news/statement/2022/02/19/readout-from-world-bank-group-president-david-malpass-s-meeting-with-volodymyr-zelenskyy-president-of-ukraine
February 14, 2022: “World shares skidded on Monday as warnings that Russia could invade Ukraine at any time drove oil prices to seven-year peaks, belted the euro and sent investors scuttling back to the safe-haven government bonds they have been dumping all year”. https://www.voanews.com/a/asian-stocks-fall-oil-prices-rise-on-ukraine-invasion-fears-/6440582.html
Construction projects aren’t just about who gets the contracts (and subcontracts), but who funds the projects. Funding must come from somewhere, contrary to what has become popular belief.
There is now the China led Asian Infrastructure Investment Bank, which seems to be a sort of competitor to the World Bank, European Bank for Reconstruction and Development, Asian Development Bank, etc. Whether a person or country, if you are in debt, you have no freedom. This is something that many Americans no longer understand, and many younger countries have never understood. So, it becomes a question of who owns you. While we like the concepts of volunteerism and bartering, most workers want or need income.
China led investment bank: https://en.wikipedia.org/wiki/Asian_Infrastructure_Investment_Bank
European Bank for Reconstruction and Development: https://www.ebrd.com/who-we-are.html
“IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused exclusively on the private sector in developing countries. We apply our financial resources, technical expertise, global experience, and innovative thinking to help our partners overcome financial, operational, and other challenges.” https://www.ifc.org/wps/wcm/connect/corp_ext_content/ifc_external_corporate_site/home
From the US trade web site:
“In autumn 2019, Ukrainian President Volodymyr Zelensky announced the launch of a ‘Great Construction’ National Program. The purpose of the program was to build the necessary infrastructure facilities throughout Ukraine. On March 1, 2020, construction works on more than 300 sites began simultaneously, including the construction and renovation of more than 100 schools, 100 kindergartens, 100 stadiums, and 200 new hospital admission departments. The construction of 4,000 km of roads was launched as well.
According to analysts at the Kyiv School of Economics, an increase in demand for construction materials and labor will boost Ukrainian GDP by 2.2%. In addition, it will lead to a cumulative increase in GDP over the next five years by 4.4%.
The economic impact of the Covid-19 pandemic has been significant and in 2020 Ukraine’s economy contracted by 4.9%. This decline will place further pressure on public spending capacity while also limiting private investment in new fixed capital developments. As a result, the construction sector is expected to contract by 8.9% in 2020. Experts are forecasting a return to growth from 2021 onwards.
The primary segments of Ukraine’s infrastructure industry are:
* Transport infrastructure: Ports, harbors and waterways infrastructure, airports, roads, railway, postal and shipping services.
* Construction: residential and non-residential building…
* Sea and river: concession of three seaports and state-owned stevedoring company “Olvia”, and privatization of Ukrainian Danube shipping company; reconstruction of Dnipro locks ($57 million)
* Airports: renovation of five regional airports (up to $500 million) and modernization of the air navigation system ($136 million)
* Roads: upgrade of five regional roads ($2.5 billion)
* Railway: construction of European 1435 mm gauge rail track high speed connection with EU and Odessa-Kyiv-Lviv route ($8.5 billion), Electrification of the railway line Dolinska – Nikolaev – Kolosovka ($416 million), electrification of the railway section Berdychiv-Korosten-Berezhest ($162 million), and construction of Kyiv Boryspil train connection
* Postal Services: construction of new mail sorting centers ($150 million), track fleet renovation ($100 million), and computerization of the network ($15 million) …”
Ukraine: Major Transport Infrastructure Projects by Value, USD million…”
See more here: https://web.archive.org/web/20220121014056/https://www.trade.gov/country-commercial-guides/ukraine-infrastructure