Ukrainian Government Launching Start of Olvia and Kherson Ports Concession

14 Авг

Over twenty companies claim for participation in concession at the two ports.

Today 14 August Cabinet of Ministers of Ukraine during its session took the decision to start the concession of public stevedores Olvia and Kherson.

“Government has just decided to approve the conditions and start concession of the sea ports Olvia and Kherson! We have more than twenty preliminary applications from powerful foreign and Ukrainian companies”, reported Minister of Infrastructure Volodymyr Omelian.

“We had prepared the new Law on Concessions which the new President of Ukraine identifies as one of the voting priorities at the new Parliament as soon as this autumn, and had established the public-private partnership office SPILNO that developed feasibility studies by the best Western standards for a number of infrastructure objects. We passed all the bureaucratic formalities, requirements and procedures. We did it all at first and were the first. And we did right, together with best public and governmental experts, both foreign and Ukrainian, and with the business”, added Mr Omelian.

As he declared before, now the tenders on concession of the public stevedores in Olvia and Kherson ports are anticipated to be announced within this month. Earlier some new details of the bidding procedures had been reported, in particular, that the winners are going to sign four-parties agreements with MIU, USPA, the winning bidder company, and the company it will have registered in Ukraine especially for the project implementation. Also, the time terms for the concession projects to be completed are extended from 10 to 15 years, and cargo experience is maximally expanded, as well as the concession project is expected to gain a transition period up to two years to develop and agree upon the immediate investment project, obtain licenses and meet other required formalities, make the assets inventories etc.