President Zelensky Ordering Soonest New Law Passing and Concessions Tendered

3 Сен

The new President of Ukraine Volodymyr Zelensky charged Government and Parliament with adopting Law of Ukraine on Inland Water Transport by 01 November 2019.

“To pass the law on inland water transport. The term: till 01 November 2019. Responsible: Dmytro Razumkov [Parliament’s Speaker], David Arakhamia [Head of President’s fraction], and Head of Committee on Transport and Infrastructure of Verkhovna Rada [Parliament] Yuriy Kysil”, instructed Mr Zelensky in the course of his meeting with Cabinet of Ministers and top officials of Verkhovna Rada in Kyiv on Monday.

Further on, President ordered to transfer to concession the assets of State Enterprise (SE) Stevedoring Company Olvia and SE Kherson Sea Trade Port (KSTP) by the end of 2019.

“To conduct pilot tenders on granting concession of the assets of sea ports Olvia and Kherson. The term: till 01 January 2020. Responsible: Minister of Infrastructure of Ukraine Vladislav Krikliy”, charged President Zelensky at the same meeting on Monday.

Let’s remind that last week the leaving Minister of Infrastructure signed the acts on tender announcement for concession of the assets of SE SC Olvia and SE KSTP, after Cabinet of Ministers took the corresponding decision on 14 August.

SE SC Olvia and SE KSTP as well as the ferry complex of SE Chornomorsk sea trade port are the sites of concession pilot project realisation in the port sector. As of September 2018 over 25 Ukrainian and overseas companies expressed concern in the concession of Olvia and Kherson, including Dnipro Cargo Ltd, Portinvest, Ukrrichflot, Bunge (USA), COFCO (China), Mitsubishi Corporation (Japan), POSCO Daewoo (Korea).

The pilot projects were endorsed by MIU on 23 June 2016, each Feasibility Study (FS) developed by the consortium of international consultants formed by EBRD and IFC (including Castalia, EY, MTBS Ukraine etc.), these FS embraced the market’s system analysis, as well as financial, technical, environmental and legal appraisals provided. Moreover, there were meetings held with potential local and foreign private partners aiming at their proposals consideration in the projects implementation.

The FS passed debates with the public stevedores workforce representatives and municipalities, and were approved by MIU and Ministry of Economic Development and Trade taking into account further employment guarantees for the workers of state enterprises.