IFC, EBRD to help the Ministry with the preparation of concession projects in Chornomorsk seaport
The Ministry of Infrastructure of Ukraine and the Ukrainian Sea Ports Authority (USPA) have signed a trilateral Contribution Agreement with the European Bank for Reconstruction and Development (EBRD) regarding the implementation of public-private partnerships in Chornomorsk seaport.
The plans for port modernization include the concession of the first and container terminals as well as the rail/ferry complex of the State Enterprise "Commercial Sea Port "Chornomorsk". According to preliminary data, the concession tenders for these projects might be announced by the end of 2022.
"Cooperating with investors is a key priority for us to develop and strengthen Ukraine's port industry, with our partners - IFC and EBRD - supporting us. The Chornomorsk port is the third largest transshipment port in Ukraine in terms of total volume, which makes these concession projects crucial for the country.
In Ukraine, the transshipment of containers has great potential for development, as it currently accounts for only 8.5% of the total volume. We expect the port capacity to double after attracting an investor to the Chornomorsk port and modernizing the container terminal. This will be a powerful stimulus for the development of the region's economy and the competitiveness of Ukraine as an infrastructure hub," Minister of Infrastructure of Ukraine Oleksandr Kubrakov said.
Advisory support by EBRD and IFC will include:
- financing the preparation of feasibility study and tender documentation for the concession projects;
- preparation of the contractual framework;
- definition of tender criteria and bidding rules;
- networking and negotiating with potential investors;
- transaction support until the commercial close.
Chornomorsk seaport concessions are the next in the series of projects to be implemented after the successful structuring of two pilot seaport concessions in Kherson and Olvia, prepared together with IFC, EBRD, and Global Infrastructure Facility. The assets of both Kherson and Olvia seaports are currently in the process of transfer to the Concessionaires. The Ministry of Infrastructure is actively helping to finalize the transfer of property. It is expected that the process will be completed by the end of 2021.
SE "CSP "Chornomorsk" is one of the largest ports in Ukraine. Its modernization will optimize freight logistics and improve the quality of service at the port to attract the world's leading operators.
For reference: more than UAH 17 billion of capital investments are needed to upgrade the infrastructure of Ukrainian ports within the next five years. Therefore, the Ministry of Infrastructure of Ukraine takes measures in line with the Government's key responsibilities to modernize the strategic infrastructure of our country.
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