The Ministry of Infrastructure of Ukraine (MIU) announced the official launch of concession projects in state stevedoring companies of Olvia and Kherson commercial sea port. The successful kick-off meeting for the project took place on March 13 during a coordination meeting with a consortium of international consultants (Castalia, MTBS/Interlegal, EY, Tebodin and Gide) who were chosen by the EBRD to develop feasibility studies and prepare tender documents for both projects.
“A new stage in the implementation of pilot projects of public-private partnership (PPP) in the Ukrainian port industry is starting March 13. Today we are announcing the official launch of two pilot PPP projects – in SE “Stevedore Company Olvia” and SE “Kherson Commercial Sea Port”, which will open the way to the concession and, we are sure, will benefit the entire maritime industry.In the coming weeks, a team of experts and consultants will fully begin developing feasibility studies for the projects, said the Minister Mr. Omelyan.
He expressed hope that the draft law “On concessions”, necessary for the implementation of PPP projects in the seaport, will be submitted to the Parliament/ Rada in March 2018. The government approved this document in late 2017.
Omelyan said that if it succeeds in implementing concession projects in Kherson and Olvia, it will be “a clear signal for foreign investors.”
The PPP project in Kherson CSP envisages attracting up to $ 45 million of private investments, which will be spent on upgrading, re-equipment and increase of transshipment facilities. In the “SC Olvia” is expected to attract an investor, who will invest about $ 250 million in the construction of a new terminal and berths on the territory of the enterprise.
SC Olvia is located in Mykolaiv, conditionally belongs to the category of “medium” seaports, handles all types of export-import, transit and cabotage cargoes, except for liquid cargo. The port is located near the largest producers of metallurgical and agricultural products (wheat, corn, sunflower) in the region.
Kherson CSP conditionally belongs to the category of “small” seaports, carries out its activity in the water area of Kherson sea port. This enterprise also processes all types of export-import, transit and cabotage cargoes, except liquid ones. Key cargoes: cereals, food, construction materials and general cargo.