Odessa, Ukraine (PortSEurope) November 19, 2017 – IFC, part of the World Bank Group, and Ukraine’s Ministry of Infrastructure signed a Memorandum of Understanding confirming their intent to launch public-private partnerships (PPPs) and encourage private investment into the transportation sector.
The IFC will help structure PPP projects at two Ukrainian ports – Olvia, near Mykolaiv, and Kherson Sea Trade Port – and will also explore the potential of structuring a PPP for a railway-ferry terminal complex at Chornomorsk Port. The projects are critical for Ukraine, a leading grain exporter, where old infrastructure often impedes the efficient movement of goods.
“Ukraine’s infrastructure needs are enormous,” said Volodymyr Omelyan, Infrastructure Minister. “We need to crowd-in private investment to modernize the country’s infrastructure and upgrade it. IFC’s support and technical expertise will help ensure we are implementing the best possible solutions efficiently and transparently.”
The partnership marks IFC’s first advisory-related PPP project in Ukraine. Under the terms of the agreement, IFC will help the infrastructure ministry enhance its ability to develop and manage PPPs through specialized training programs. IFC’s PPP experts will also support the ministry as it develops a broader legislative framework for PPPs and locally-tailored guidelines for preparing PPP projects.
“Increased private sector participation in the infrastructure sector is crucial for economic growth and job creation in Ukraine,” said Jason Pellmar, IFC’s regional head for Ukraine, Belarus, and Moldova. “Modernizing infrastructure through PPPs, especially in ports on the Black Sea, will help boost exports and drive economic development in the country.”
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