Odessa, Ukraine (PortSEurope) October 20, 2020 – Chernomorsk seaport is the next state-owned infrastructure to become a public-private partnership (PPP) project. The Ministry of Infrastructure of Ukraine plans to partly sell concessions in the railway and ferry complex, as well as the container terminals of Chernomorsk. The news was announced by Minister of Infrastructure of Ukraine, Vladyslav Krykliy, during the panel discussion “Privatization and Concession
in Transport 2020-2021: Next Steps”, an event organized by the American Chamber of Commerce of Ukraine (ACC). The event was also attended by the President of the American Chamber of Commerce in Ukraine Andriy Hunder, Chairman of the State Property Fund Dmytro Sennichenko, Acting AMPU Chairman Oleksandr Holodnytsky, representatives of the Ministry of Infrastructure, ACC, Ukrzaliznytsia, business and the public. “I am convinced that business should be involved as much as possible in the management of state assets. Today in the Ministry, we are working on the implementation of promising public-private partnership projects in various infrastructure sectors. In the summer, we leased Ukraine’s first seaports, Olbia and Kherson, with a total investment of about $134 million, and we continue to accompany our concessionaires. The next potential projects are the concession of the railway and ferry complex, as well as the first and container terminals of the Chernomorsk seaport<2, the head of the Ministry said. Vladyslav Krykliy said that today the stage of pre-qualification under the project of concession of the railway and ferry complex of the Black Sea port was completed and two companies – Ernst & Young and Hamburg Port Consulting – were admitted to the tender. “Next week we plan to hold a tender and determine the winner who will provide consulting services for the preparation of the feasibility study and tender documentation. And in the second quarter of 2021, we expect to announce the competition itself”, said the minister. The next promising project will be the concession of the first and container terminals of the Chernomorsk seaport. The selection of legal and technical consultants is currently underway to prepare a pre-feasibility study for the project, the winner of which will be determined in late October and will begin work in November. The concession tender itself is planned for the end of next year. Vladyslav Krykliy also shared his immediate plans for the implementation of potential concession projects in other seaports of Ukraine, in particular, Berdyansk, Odessa and Izmail. “Egis International consultants have already prepared the final pre-feasibility report of the Berdyansk Sea Commercial Port. Negotiations are underway with a potential private investor to develop a feasibility study for a concession in the port of Odessa. Funding has been found for the development of a pre-feasibility study for the concession of the Izmail seaport, and the development of a feasibility study for a pre-feasibility study is underway. We also plan to launch concession projects in Mariupol and Rhenish seaports and are currently seeking pre-feasibility study funding for these projects, ”the head of the Ministry added. At the same time, three stevedoring companies have been proposed for privatization – Belgorod-Dniester Sea Commercial Port, Skadovsk Sea Commercial Port and Ust-Dunaisk Sea Commercial Port. Vladyslav Krykliy noted the Ministry’s plans to develop high-quality and modern roads through the implementation of the Program for the Development of the Ukrainian Highway Network through the PPP mechanism, which is currently being finalized with the participation of the World Bank and Global Infrastructure Facility. The program provides for the rehabilitation of more than 4,500 km of roads and attracting investments from the private sector in the amount of about 9 billion US dollars. In addition, a team of IFC and EBRD experts completed a preliminary analysis of the possibility of concessions by groups of some airports. “It is assumed that they will be able to access state co-financing through a special airport fund. The source of the fund will be, first of all, the excise tax on aviation fuel, which will allow to renew two regional airports each year. Prior to the creation of the fund, we are already implementing the concept of PPP – the state provides funding for the restoration of the runway, and a private investor is investing in the restoration of the terminal. According to this model, an airport is being built in Dnipro and an airport in Zakarpattia is planned, ”Vladyslav Krykliy said. According to him, the possibility of launching a railway fund is being studied, which can become a source of payments for operational readiness for the concession of stations and other PPP projects, as well as speed up the process of upgrading passenger rolling stock of Ukrzaliznytsia. At the same time, the Ministry is actively preparing concession projects for railway stations in Kharkiv, Dnipro, Vinnytsia, Khmelnytsky, Mykolayiv, Chop and Kyiv-Pasazhyrsky. “The total investment required for the modernization of 7 railway stations is UAH 3.8 billion. We are now going through the necessary procedures, which, of course, we would like to speed up. On average, a concession project lasts 22 months, of which 12 are for preparation. In December, we will have a decision on the feasibility of preparing the feasibility study of railway stations, by March 2021 – the feasibility study of projects. Copyright (C) PortSEurope. All Rights Reserved. 2020.