Now the realisation of Concession Agreements is hindered by red-tape procedures.
“We have to implement the international experience in order to simplify the procedures of concessioned assets transfer to an investor”, Minister of Infrastructure of Ukraine Oleksandr Kubrakov has written in Facebook.
On Thursday 27 July the minister took part in the National Council on Reforms meeting chaired by President Volodymyr Zelensky, where he presented the key reforms required by the port sector.
In particular, there is the elaboration of complex permits for the construction and operation of port infrastructure objects continued jointly with Office of Simple Solutions. This is going to serve an extra incentive for investors to come to Ukrainian market.
The law of landlord and tenant needs amendments as well. It is the existing port operators’ lease terms extension spoken about, in order to involve more investments. Say, there are some $100M of investments failed to reach Ukraine’s port sector because of the law deficiencies.
By the end of 2021 a number of measures are to be taken to modernise the state enterprise Sea Trade Port Pivdenny (former Yuzhny) simultaneously with the rail tracks laying and electrification completed at the section Chornomorska – Berehova, which is going to considerably enlarge the public stevedore’s throughput capacity.
The construction of a 5.3 km highway is also underway to connect M-28 Odessa-Yuzhne highway with Odessa Port. The route will become a free alternative to the existing one, which passes through the territory of a private company.
Some projects are in progress to develop port and railway infrastructure in the ports of Chornomorsk, Mykolaiv, and Mariupol.
Mr Kubrakov noted that in the next 5 years, about UAH 17 billion of capital investment is needed to renovate Ukrainian ports. This is a strategic infrastructure, development of which is the state’s responsibility.
“While the port infrastructure of the EU countries and our other neighbours is subsidised by the state, for years we not only lacked any backing, but also brought the funds into state budget that should had been be directed to support and develop infrastructure. As a result, the degree of the port infrastructure depreciation has reached the record 80%. Therefore, we are initiating the change in the state ‘dividend’ policy – i.e. reduction of payments from the USPA and public stevedore companies’ net profits to the state budget down to 30%. Now it is 80% of the net profit after all taxes paid”, Minister said.
According to him, such changes are to enable covering more than a half the needed capital investments, which is going to give an impetus to the growth of international trade and economy in general.
MIU also uses various scenarios of interaction with investors, the most prioritised of which is the concession.
In May 2021, acting Oleksandr Golodnitsky, Head of USPA, announced that the transfer of the integral property complex of State Enterprise Kherson Sea Trade Port to the concessionaire will be completed in June, the same concerning State Enterprise SC Olvia – in December this year.
https:/ports.ua/peredacha-konczessioneram-imushhestva-olvii-i-hmtp-zavershitsya-do-koncza-goda-kubrakov/