Ministry of Infrastructure of Ukraine (MIU) has developed a package of steps towards attraction of investments in the port sector. They include reduction of the financial burden, transfer of public stevedores to concession, and large scale capital investments in the infrastructure.
This was spoken about at the meeting of National Council on Reforms in Kyiv chaired by President Volodymyr Zelensky.
“In the next 5 years there will be some 17Bn UAH of capital investments needed for the Ukrainian ports’ renovation. It is the strategic infrastructure spoken about, development of which is the state’s responsibility”, declared Minister of Infrastructure Oleksandr Kubrakov.
The first step will be reduction of dividends’ payment Ukrainian Sea Ports Authority and public stevedores must pay to the state budget from their net profits down to 30% against the current 80%.
“Such changes are going to enable us to cover over a half of our needs in capital investments which is going to make an impetus to the development of international trade and economy on the whole. We also employ various schemes with investors, the first priority of which is concession”, noted Mr Kubrakov.
By the end of the year the state enterprises Stevedoring Company Olvia and Kherson Sea Trade Port are to transfer to concession. MIU plans to implement international experience in order to facilitate the procedures of the assets’ delivery to concessionaires, elaborating as well jointly with Office of Simple Solutions the complex permits to build and operate port assets. This is going to serve an additional incentive for would-be investors to enter Ukrainian market.
Also, as per Minister, it is necessary to revise and amend the legislation on rent and lease due to flaws of which the state gets about $100M less of investments.
There is a separate range of work i.e. the development of ports adjacent infrastructure. Now there are the rail and motor roads to the public stevedore Pivdenny (Yuzhny) Sea Trade Port within the President’s program ‘Big Construction’. The plans also embrace the development of port and railways infrastructure in the ports of Chornomorsk, Mykolaiv, and Mariupol.
Let’s remind you that President’s Office announced that Zelensky’s infrastructure program envisages the ports development. The state intends to keep economically viable ports such as Pivdenny (Yuzhny), while the rest will be concessioned.
https://delo.ua/business/ukrainskie-porty-nuzhdajutsja-v-17-mlrd-griven-k-384889/