MIU Developing Procedure for Signing Agreements on River Infrastructure Investments

16 Дек

The instrument is intended to create an efficient mechanism of attracting private investments in the inland water transport (IWT) strategic infrastructure objects.

Ministry of Infrastructure of Ukraine has developed and published for the public debates a draft governmental Act on Approval of Procedures and Conditions for conclusion Of Agreements on Investments by Business Entities in IWT Strategic Infrastructure Assets.

According to the explanatory note to the document, it was developed to ensure implementation of the provisions of Article 10, the Law of Ukraine on IWT, Action Plan for the implementation of National Transport Strategy of Ukraine for the period of up to 2030, as well as to ensure the possibility of reimbursing investments in the IWT infrastructure public assets, which would contribute to attracting appropriate investments and, accordingly, the IWT development.

MIU Developing Procedure for Signing Agreements on River Infrastructure Investments




The draft act proposes to establish procedures for an investor intending to invest in strategic infrastructure facilities on submission of proposals (applications) on investing, requirements for such an appeal, procedures for an enterprise managing strategic infrastructure facilities on considering the submitted proposals, procedures for such an enterprise on making a decision based on the results of offers consideration, a list of conditions an investment agreement must necessarily contain, conditions under which an investment agreement shall be signed, as well as cases when the investor loses the right to compensation under the investment agreement and when the company does not repay monetary obligations to the investor, certain rights of the investor arising from the investment agreement.

MIU has reminded that the Law on IWT adopted by Verkhovna Rada (the parliament) of Ukraine in December 2020, which, with the exception of certain provisions, will enter into force on January 1, 2022, envisages the a public enterprise established for the maintenance of inland waterways (IWW), in order to keep them in navigable conditions.

Para 64, Article 1 first part, the Law on IWT, stipulates that strategic infrastructure objects of IWT shall be state-owned navigable canals of IWW (except for access canals to berthing facilities and navigable canals of inland sea waters), hydraulic structures, navigation aids, and navigational and hydrographic support of shipping, as well as the asset of River Information Service (RIS).

To date, strategic infrastructure facilities for inland waterway transport are managed by the three state-owned enterprises: navigational hydraulic structures (navigational locks) – by еру state enterprise (SE) Ukrainian Waterways (Ukrvodshliah); navigation aids and navigational and hydrographic support of shipping – by SE Ukrainian Hydrography Service (DerzhHydrografia), abd RIS assets – by SE Ukrainian Sea Ports Authority (USPA). For a long period of time the IWT assets classified by the Law as strategic objects have not received sufficient funding to maintain them in proper technical condition and modernise them.