USPA: New Concession Law to Improve Olvia and Kherson Pilot Projects

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Head of Ukrainian Sea Ports Authority (USPA) Raivis Veckagans is sure that adoption of the new Law on Concession by Verkhovna Rada (Parliament) of Ukraine will favour attraction of international investors to implementation of the public-private partnership (PPP) projects in the port sector and enhance the conditions for realisation of public stevedores concession pilot projects in the ports Olvia and Kherson.

Although the very tenders and contracts signing will go under the legislation in force at the moment of their announcement, the new Law is going to significantly expedite the start of project’s realisation and simplify a considerable number of transition procedures for investors.

“Upon the new Law’s entry in force the time a concessionaire would have had to spend for the processing of all required procedures, development of projects, and receipt of licences, may shrink from 1.5 years to 3 months. The reduction of bureaucracy will enable to faster take on actual development of investments, which is what the state, investor, USPA, and local authorities directly concerned with”, commented Head of USPA on the decision of Verkhovna Rada by 03 October.

According to Taras Boichuk, Head of the SPILNO project office for PPP development of Ministry of Infrastructure of Ukraine, thanks to the changes in legislation the land plots allotment procedure will substantially simplify for the winners of Olvia and Kherson ports concession tenders, the necessary terms of the design beginning decrease as well, and also the investors will be able to start operations under the existing licenses of public stevedores. Concessionaires will have half a year to re-issue them.

Moreover, enhancement of the concession legislation in Ukraine is going to promote more active participation of international and local investors in open concession tenders regarding public stevedores in other sea ports, preparation of which is already on.