The feasibility study (FS) for concession of the state enterprise (SE) Stevedoring Company Olvia having been worked upon for some six months, was presented to the labour representatives on Tuesday.
In order to take part in the discussion on the FS the enterprise was business-visited by State Secretary of Ministry of Infrastructure of Ukraine (MIU) Andrii Halushchak, Director of Department of Maritime and Inland Water Transport Reforming and Functioning of MIU Oleksandr Basiuk, Chairman of Infrastructure Public and Private Partnership (PPP) Development Project Office SPILNO Taras Boichuk, Expert on Investments of International Financial Corporation (IFC) Oleg Kudashov, Chairman of Maritime Transport Workers Trade Union of Ukraine Mykhailo Kireev, as well as representatives of SE Ukrainian Sea Ports Authority (USPA). The meeting was also attended by Acting Director of SE SC Olvia Ruslan Oliynyk, Head of USPA Branch Oktiabrsk Andrii Iehorov, other Olvia top managers, trade union leaders, and the company employees.
In the course of the discussion Mr Kireev addressed the FS designers and MIU officials with a suggestion to create a controlling body to supervise implementation of the concession agreement requirements, the one to be participated by trade union representatives. “The social component is one of the main ones in this FS, so I hope that when the concessionaire is defined, a controlling body would be established as well with the trade union people within, so that it enables to supervise fulfilment of the agreement’s conditions and social guarantees”, he stressed.
The project consultants who worked upon the FS development have presented the basic conclusions on the concession efficiency, local budget supply, as well as focused on consideration of social matters which concern certain guarantees for the company’s employees during the transfer to concession, namely waiver of forceful staff reductions, retention of the wages level and their indexation, prolongation of the CBA for 5 years.
“Not only myself, but all the employees do understand that the enterprise strives for development and attraction of investments. The most efficient form of investments involving is, by all means, the concession. In the future we are going to analyse the FS and identify the project’s feasibility”, noted the manager of Olvia Ruslan Oliynyk summing up the meeting.
Also, the concession FS was presented on Tuesday to Mykolaiv City Council and Chairman of Regional Administration Oleksii Savchenko.
In November 2017 MIU and IFC signed a memorandum of understanding driven toward PPP development in the port sector of Ukraine. According to the document, IFC should help structure PPP projects in SE SC Olvia and SE Kherson Sea Trade Port (KSTP). IFC should also examine possibilities of structuring a PPP project for rail-ferry complex of SE Sea Trade Port Chornomorsk.
SE SC Olvia, SE KSTP and rail-ferry complex (Terminal 5) of SE CSTP are among the public companies where concession pilot projects are implemented, corresponding business cases were approved by MIU on 23 June 2016, and the pre-FS of them was finished in September 2017.
The state-owned stevedore Olvia enhanced in 2017 its cargo turnover as compared to 2016 by 13.4% – up to the record-breaking 2.51M t.
Olvia sea port is situated 25 km south of Mykolaiv on the left bank of Dnipro-Bug Liman. There are 7 cargo berths with 1.53 km waterfront. The port’s share in the total throughput of Ukrainian sea ports amounted to 5.2 % in 2017 against 5 % in 2016.