Ukraine’s Ministry of Infrastructure continues implementation of pilot concession projects
Ukraine’s Ministry of Infrastructure supported by “SPILNO” PPP Project Management Office moves ahead with the pilot concessions in ports Olvia and Kherson.
Selection of the consultants’ consortium, comprising leading international and experienced Ukrainian companies, made a good start for the feasibility studies preparation. The consultants, backed by EBRD and IFC, began their work in March this year.
The key findings of a comprehensive market analysis combined with a thorough financial, technical, environmental and legal analysis, formed a solid basis for the feasibility studies of both projects. During the meetings with potential investors, the suggestions of a wide range of domestic and international private partners were collected.
Feasibility studies demonstrate that concession in Olvia port may potentially: (a) attract investments of about UAH 17.3 bln, (b) increase budget revenues up to UAH 58 bln within entire 35 years of the contract, including revenues from the concession fees up to UAH 19.5 bln.
In its turn, Kherson Port over the next 30 years might: (a) get investments of about UAH 1.37 bln, (b) increase budget revenues up to UAH 14.3 bln for the entire duration of the concession contract, including revenues from concession fees up to UAH 2.8 bln.
Working Groups under the Ministry of Infrastructure finalized a Conclusions on the efficiency analysis on PPP in both ports in October this year.
Now we are heading to the next step — approval of the Conclusions by the Ministry of Economy to enable the Ministry of Infrastructure of Ukraine to form the tender commission and proceed with the tender organization.