FSUE Rosmorport says the report of RF Accounts Chamber on construction of state facilities at Ust-Luga seaports is premature

The Collegium of the Accounts Chamber of the Russian Federation chaired by Tatyana Golikova has considered the findings of the audit on the use of budgetary funds allocated in 2015 and the expired period of 2016 for implementation of measures under sub-programme “Maritime transport” of the Federal Targeted Programme “Development of Russia’s Transport System in 2010-2020”. According to the press center of the Accounts Chamber referring to the report of Oleg Chernyavsky, Director of the Department on expert-analytical and monitoring activities in the field of Federal budget expenditures on fuel and energy complex, transport and roads (road funds), the facilities of commercial sea port of Ust-Luga (Leningrad Region) built in 2013 are not in operation.

The Accounts Chamber attributes this, in particular, to the absence of supPORT FLEET water area in the southern district of Ust-Luga seaport. Dredging works under the state contract with FSUE Rosmorport were started in 2008 by Northern Dredging Company (NDC, LLC). 

“The works were not completed in 2015-2016. Northern Dredging Company, LLC was recognize as a bankrupt. FSUE Rosmorport is currently trying to recover RUB 76.9 mln of overdue receivables through the courts,” said Oleg Chernyavsky.

FSUE Rosmorport told IAA PortNews that all facilities of Ust-Luga port built under the Federal Targeted Programme “Development of Russia’s Transport System in 2010-2020” had been put into operation except for those in the port’s southern area. Due to reasons beyond the control of FSUE Rosmorport, dredging works had been not fulfilled by the contractor, NDC. In compliance with RF legislation, FSUE Rosmorport and tax authorities laid actions against NDC for its non-performance of obligations. According to the court decision and in view of NDC bankruptcy proceedings, Rosmorport has cancelled the state contract signed earlier. 

FSUE Rosmorport currently performs self-financed designing of the works required for completion of the water area in the southern district of Ust-Luga seaport. The design is to be completed and approved by March 31, 2017. Rosmorport will commence works at the water area of Ust-Luga seaport in spring 2017.

According to the Accounts Chamber findings, FSUE Rosmorport failed to undertake measures providing for fulfillment of contractor’s obligations under the state contract signed with PST OJSC, The contract worth RUB 1.6 bln on construction of supPORT FLEET base at Commercial Sea Port of Ust-Luga was signed in 2012. 

Oleg CHernyavsky says the amount of accounts receivable under the state contract was RUB 118.7 mln as of June 1, 2016. 

FSUE Rosmorport says that construction of supPORT FLEET base at Commercial Sea Port of Ust-Luga has not been completed and continues according to the available financing. The date of completion cannot be forecasted by Rosmorport amid absence of a long-term forecast for allocations needed for the project implementation.

In October, FSUE Rosmorport will contribute a detailed comment to IAA PortNews.