On Wednesday 12 August Cabinet of Ministers of Ukraine has passed Decree No. 706 on adoption of Concession Payments Techniques (CPT).
According to the CPT, such payments may in particular be calculated as some percentage of the net income gained by a concessionaire resulting from his concession activities; as some percentage of the concession assets’ value by its market assessment; and as a fixed amount which may base on the volume of goods, works or services produced by the concessionaire.
Moreover, a concession fee can be defined by combining several approaches.
In case a new concession object is created (newly built) the fee cannot be defined as a part (percentage) of this new object’s value by its market assessment, but shall be set in accordance with Law on Concession, Article 34, p. 4, i.e. from the starting date of the income gained from concession object’s operation.
Further on, the CPT specifies calculations developed as formulae, as well as the annual corrigenda etc.
Let’s remind you that in late June Ministry of Infrastructure of Ukraine (MIU) has signed the agreement on concession of the public stevedore Kherson sea trade port assets and a part of the Kherson branch of Ukrainian Sea Ports Authority (USPA) assets as an integral operation unit.
As regards the Olvia sea port public stevedoring company’s assets concession, the corresponding agreement similar to above is expected to be signed in late August with the Qatar port operator QTerminals who won the concession tender last year.
Both concessions were the pilot projects led by MIU since 2016, the feasibility study for which prepared by an EBRD and IFC funded international consultants’ team (Castalia, EY, MTBS Ukraine et al.)
MIU is committed to grant for concessions three more objects in sea ports, and another three for sale. The same concerns some railway stations, airports, and motor roads.
https://cfts.org.ua/news/2020/08/12/v_ukraine_utverzhdena_metodika_rascheta_kontsessionnykh_platezhey_60201
https://www.kmu.gov.ua/npas/pro-zatverdzhennya-metodiki-rozrah-706