Set of Documents on Yuzhny Port Concession to Be Completed in 2020

13 Авг

The concession of Pivdenny (Yuzhny) Port public stevedore has been compared with the privatisation ov Kryvorozhstal in 2005.

Minister of Infrastructure of Ukraine Volodymyr Omelian reported in his interview to that the set of documents on concession of the state enterprise Pivdenny Sea Trade Port (PSTP) is expected to be ready in 2020. He noted that the port of Pivdenny (Yuzhny) is an interesting asset for concession on the marine sector. “We can do everything that should be done provided none interferes with. We have begun the documents set preparation that is to be completed in 2020, upon which the tender could be announced. There is some bizarre interest toward this asset, yet it might turn both as the sale of Kryvorozhstal and the Ukrnafta situation”, told Minister.

“We have about 10 objects – ready or almost ready. Among the ports – it is Yuzhny. Then we are going to consider Chornomorsk – basically we have a bid by Hutchison Ports regarding lease of the box complex. Regarding a number of our smaller ports, namely Ust-Dunaisk, Skadovsk, Reni, Izmail and the Danube Shipping Company, there is a number of offers”, maintained further Mr Omelian.

Let’s remind that last September MIU already had Pre-Feasibility Study (FS) for the PSTP concession project approved, yet the document hasn’t been yet endorsed. Experts have worked out several options of the company’s development with a concessionaire’s involvement, by results of which MIU is expected to elaborate a concept note on the public-private partnership (PPP) project. Then MIU stated they were deciding in favour of concession as in that case the state would gain a share of the investor’s profit while in the lease variant the budget normally enjoys an annual fixed amount in local currency.

According to the cargo flows development scenarios in the port, raw iron ore materials and coal handling will grow.

After the approval of Pre-FS MIU is starting work with International Financial Corporation (IFC) and European Bank of Reconstruction and Development (EBRD) concerning the provision of FS and the further tender.