Poland to Finance Ukraine's New Toll Road to Lviv: How the Loan Will Be Repaid

Loan for the Construction of the M10 Highway

According to Главком: Poland intends to extend a loan to Ukraine for building the M10 toll highway, a roughly 80-kilometer route linking the Korczowa-Krakowiec border crossing to the city of Lviv. The debt will be repaid using toll revenues, which will flow directly into Poland's state budget. Design work on the new roadway could begin before the end of active hostilities, with construction planned to start once a peace agreement is reached.

The M10 highway will serve as an extension of Poland's existing A4 expressway, connecting the border checkpoint with the Ukrainian city of Lviv. It will be a toll road, and all revenue from user fees will be earmarked for repaying the Polish loan. All construction activities will be carried out in accordance with Polish law. The official signing of the agreement is scheduled for the Ukraine Recovery Conference, set to take place on June 25–26 in Gdańsk.

Part of a Broader Logistics Strategy

Beyond this single project, the M10 highway is a key element of a much larger logistics strategy that also includes:

• building a railway line using the European standard gauge;
• developing a major freight terminal in central Ukraine;
• implementing a Polish-operated seaport project on the Black Sea.

As Bartłomiej Babuśka noted, 'this initiative is part of a wide-ranging logistics strategy designed to open new markets for Polish companies in the East and the Middle East.'

It is worth noting that plans to upgrade the M10 route have been discussed since preparations for the Euro 2012 tournament. On the Ukrainian side, the current M10 is a single-lane road, while the larger Krakowiec-Brody-Rivne expressway project-stretching roughly 280 kilometers-remains only on paper. That project also considered a public-private partnership model.

Serhiy Sukhomlyn emphasized that 'Ukraine will almost inevitably shift to toll roads after the war ends: the state will not be able to independently finance a large-scale infrastructure rebuild.'

In summary, the M10 project opens up new opportunities for infrastructure development in Ukraine and strengthens economic ties between Poland and Ukraine.

This initiative represents a significant step toward rebuilding Ukraine's transport infrastructure, which could drive economic growth once the conflict ends. The M10 toll highway will not only improve connectivity between Poland and Ukraine but may also lay the groundwork for further investment in the region's transport network. Importantly, the project aligns with broader efforts to integrate Ukraine into European logistics systems.

In addition to the M10 highway project, Ukraine and Poland are also set to enhance their border collaboration through a forthcoming agreement. This deal aims to streamline border control processes, further solidifying the economic ties between the two nations. For more insights on this significant development, read about the upcoming border control agreement that will complement the logistics initiatives.