Changing pattern of financing road infrastructure in Ukraine

Decentralization processes taking place in Ukraine could not pass by such an important sector as transport, especially the road transport sub-sector. Currently reconsideration is needed both in the system of roads and in the system of their financing, so the present article gives a detailed insight of Ukrainian legal framework concerning those issues. Thus, funding and administration of the public roadways is performed by Ukravtodor and is excessively centralized, so there is a need for reform by passing local roads to regional level (under the present system - to the regional state administrations, and with possible amendments to the Constitution of Ukraine - to local governments). The article considers the system of road funding, which is currently effected from the budget (state and local) and from borrowed resources. The authors determine two stages of reforming the model of budget financing of transport and road infrastructure (the first stage (2008-2013), which began with the adoption of the "Concept of Reforming the System of Administration of the Public Roadways" and the second stage (2013-2018), which began with the adoption of Focus Program of public roads in 2013-2018), in which, the new scheme of road funding, except the budget and borrowed funds, will include a real application of the mechanisms of public-private partnerships, including concessions. The authors propose various improvements in the model of budget funding, which involve the creation of an effective State Road Fund, whose existence will be fixed in the Budget Code of Ukraine, with clearly defined and fixed sources of formation and direction of channeling funds. The article provides recommendations for improving the regulatory framework for the reform of the road sector.