Japan Bank for International Cooperation (JBIC) has signed an ODA loan agreement totalling ¥19.092bn with the cabinet of ministers of Ukraine for the Boryspil State International Airport Development Project. This is the first ODA loan JBIC has extended to Ukraine.
Under the project, an international airport terminal with a capacity of handling 1.85mn air passengers annually will be constructed and related facilities will be developed at the Boryspil State International Airport, which serves the capital city of Kiev. The project aims to meet growing air transport demand, in quantity and quality, in line with the Ukrainian government’s policy of supporting the air transport industry.
Situated in Kiev, which is Ukraine’s political and economic hub, with a population of 2.6mn, Boryspil State International Airport is the country’s largest international airport and serves as a gateway for passengers flying to and from Ukraine.
Reflecting the eastward enlargement of the EU, as well as brisk recovery of the Ukrainian economy, the volume of air travelers that Boryspil State International Airport handles significantly increased over the 1998-2004 period, registering an average annual growth of 15.7%. The expansion of the international passenger terminal is thus urgently called for to meet the growing demand in the coming years.
Under these circumstances, the government of Ukraine drafted in 2001 the “State Comprehensive Programme of Development of Air Transport of Ukraine up to 2010 “This Plan aims to recover the air transport industry from the past stagnation, ensuring that the industry has sufficient competitiveness in the domestic and international air transport markets and can meet growing air transport demand in both quantity and quality.
The Boryspil State International Airport Development Project, which is implemented in line with this government policy, is expected to enhance the airport’s capacity to handle passengers, and to improve convenience and safety of airport facility users by newly constructing an international airport terminal building and related facilities. The project will also help revitalize the country’s social and economic activities by promoting inflow of foreign direct investments and tourists into Ukraine.