The Ministry of Infrastructure of Ukraine and IFC signed a Memorandum of Understanding
On November 14, 2017, the Ministry of Infrastructure of Ukraine and IFC signed a Memorandum of Understanding confirming their intent to launch public-private partnerships (PPPs) and mobilize much-needed private investment into the country’s transportation sector.
IFC’s advisory team will help structure PPP projects at two Ukrainian ports - SE "Stevedoring company "Olvia" and SE "Kherson Sea Commercial Port". IFC will also explore the potential of structuring a PPP for a railway-ferry terminal complex at Chornomorsk Port.
Volodymyr Omelyan, the Minister of Infrastructure of Ukraine emphasized that these projects are critical for Ukraine, a leading grain exporter, where dated infrastructure often impedes the efficient movement of goods. Modernization of maritime infrastructure, in particular ports on the Black Sea will help boost exports and drive economic development in the country.
“Ukraine’s infrastructure needs are enormous. 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”, Volodymyr Omelyan said.
“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. We hope that cooperation with the government will allow developing PPP in priority sectors and overcome challenging issues to the country's further development. "
The signing of the Memorandum with the Ministry of Infrastructure of Ukraine is the first IFC consultative project on the development of PPP in Ukraine. IFC will help the ministry team 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.
Through financing and advisory services, IFC has been helping national and municipal governments attract qualified private sector partners for over 30 years. Over the last decade, IFC’s PPP Transaction Advisory team has generated nearly $22 billion of private investment in infrastructure, and supported governments in improving essential services such as power, transportation, healthcare, water and sanitation.