The last obstacles to the transfer of integrated assets from State Enterprise (SE) Stevedoring Company (SC) Olvia and SE Kherson Sea Trade Port (KSTP) to the concessionaires will be removed by the end of 2021, as declared by Acting Head of SE Ukrainian Sea Ports Authority (USPA) Oleksandr Golodnytsky.
“As regards major problems to brake the process’s dynamics, it is the issue of mining licenses and lands allotment concerning KSTP, while in Olvia the foreign investor has to complete the due diligence which could not be done earlier. Yet in December I am sure the procedures will be finalised both for Olvia and Kherson. There are no questions already to USPA, only minor questions left to the public stevedore and regional administration”, Mr Golodnytsky said during the expert talks Public Property: Opportunities and Hindrances for Private Investments in Infrastructure that took place on Friday 24 September.
According to him, the Olvia and Kherson projects are the pilot ones as concerns both the tenders and their realisation.
“We have run into multiple petty issues. For instance, there shouldn’t be any leased or rented equipment in the concessioned assets. And for two months we had two fix the issues of, say, vending equipment at the entry gates, and the like. State Property Fund cannot terminate this contract. And we have agreed with the concessionaire upon that lease to be prolonged”, explained Head of USPA.
In May 2021 Oleksandr Golodnytsky announced that the transfer of KSTP assets to the concessionaire would be completed in June, and that of SE SC Olvia – in December 2021.
Let’s remind you that the agreement on transfer to concession by the company Risoil Kherson of the state enterprise (SE) Kherson Sea Trade Port was signed in last year’s June. And as soon as in August 2020 the SE Olvia stevedoring company transfer to concession agreement was signed with the Qatar company QTerminals.
The KSTP concession agreement envisages the fixed concession fee as 12M UAH and 7% as the variable, and almost 300M UAH of obligatory investments. The investor declared his plans to upgrade the handling capacities and turn Kherson port into a river hub.
Qatari investors have undertaken to invest some 3.4Bn UAH in the port’s development, moreover at least 80M UAH to be invested in the local infrastructure.
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