Olvia Concessionaire to Invest in City Infrastructure and Enlarge Handling to 8M

5 Мар

Mykolaiv municipal council and the winner of concession tender on the assets of public stevedoring company Olvia – LLC QTerminals Olvia – have signed a MoU according to which the city is going to receive 80M UAH for its infrastructure development, as reported by the municipality’s Press Office.

In compliance with the concession agreement the investor shall assign funds to improvement of the infrastructure of Mykolaiv city. These funds have been preliminarily agreed to be used for the construction of underground passage under railway in the city limits, as per the city’s Mayor Oleksandr Senkevych.

According to the municipality’s head, there are already arrangements on the second link of rail connection, and the project design documentation for the underground viaduct is going to be developed in the nearest time.

“In the future Olvia Port cargo handling numbers may grow five times. Hence the infrastructure development is extraordinarily important. The passage built would allow this city district’s inhabitants normally transporting by the city, and the enterprise – successfully developing”, stressed Mr Senkevych.

Neville Bissett, the investor company’s CEO, expressed a hope that the cooperation of QTerminals Olvia with the municipality should favour upgrading and enhancement of the city’s infrastructure.

“The first we want to do is to help the municipality in constructing the underground passage in this district. We plan to invest in the port’s development. This is the first concession agreement signed with Ukraine, and I hope it will be successful. Furthermore, we intend in the future further develop out cooperation with the city and its municipal council”, assured Mr Bissett.

The representatives of QTerminals Olvia also had a discussion with the port’s authority and public stevedore company. The parties considered the current state of concession’s transition period as well as further collaboration prospects. Neville Bissett expressed his hope that the cooperation of QTerminals Olvia with the USPA branch and public company’s management should promote modernisation and development of the se port’s infrastructure.

“Under favourable conditions within the nearst 5 years upon the transition period completion QTerminals Olvia LLC is going to enlarge the cargo throughput to 3.5 – 5M t a year, and then within the next 10 years – to some 8M t annually. We are very grateful to the port’s administration for its fruitful cooperation at the phase of transition period and will develop our collaboration further on”, declared Mr Bissett.

During the meeting thorough attention was drawn to the realisation of concession agreement measures concerned with the forming of integral asset, work of the joint commission on identifying actual availability and condition of the concessioned assets, plans on fairway dredging in the port’s harbour and Bug-Dnipro Liman access channel, as well as procedures of the quays’ technical documents development.

The USPA branch manager in his turn also highly appreciated the cooperation with the investor company, and noted that the branch planned to fulfil the port harbour’s operational dredging of 380,520 m3, the berths’ and bank protection structures’ surveying works provision, as well as surveying the harbour depths.

As per the concession agreement, the tender’s winner Qatar-based port operator QTerminals shall invest about 3.4Bn UAH in the port’s development, and at least 80M UAH atop of it shall be assigned for the local infrastructure.

Just before these meetings in Ukraine, Ukrainian Vice Minister of Foreign Affairs Dmytro Senyk met the QTerminals top management in their HQ during his working visit to Qatar State and discussed the situation with the concession of Olvia Port public operator’s assets by the company. He was familiarised with the up-to-date infrastructure and technical capabilities of Qatari main sea port Hamad being a major port of the Gulf and the Near East. the vice minister invited Qatari investors to visit Ukraine in order to get acquainted with the country’s infrastructure investment potential.