Ukravtodor has begun negotiations with the company Transmagistral on termination of the public private partnership agreement for the construction of the highway Lviv - Krakovets. If the contract with the company is not terminated in the near future and a new, solvent concessionaire is not found, Ukraine risks losing the right to host European Football Championship in 2012, the newspaper Delo reports.

The highway Lviv - Krakovets is a part of the international transport corridor Berlin - Wroclaw – Kyiv.

"The project is not being realized for 10 years. The concessionaire has not been able to find the money and start construction up to date. And now the company is in the courts of bankruptcy," - said the deputy head of Ukravtodor Mykola Berezovsky.

Ukravtodor does not have the right to break the contract with Transmagistral unilaterally. "We are waiting until the court makes a decision about the bankruptcy of the company," - says the head of Ukravtodor Vadym Hurzhos. According to him, as soon as the contract is broken, the state concern will hold a new competition to attract the concessionaire. "This object has long been ready to go. Even the most problematic issue - the withdrawal of land – has already been settled, but the work has not begun", - says Mykola Berezovsky.

Vice President for Economic and Legal Affairs of the company Transmagistral Bogdan Nesteruk recognizes that all construction work has been suspended and there is no money for its restoration. However, according to him, the reason for this is incorrect public private partnership agreement which was made by Ukravtodor.

At the same time, as Ukravtodor noted informally, it is advantageous for both sides to settle the issue amicably. Hr 25 mn of state funds has already been invested into construction of the road. The search for a new concessionaire will take at least 3 months, UEFA will make decisive tests how Ukraine is ready for the championship in late November, and the fate of Euro-2012 will be decided on 10-11 December.