Ukraine preparing to reset port concession projects

MOSCOW. Nov 12 (Interfax) - The Ukrainian Restoration Ministry is preparing to launch new concession projects and to reset suspended concession projects in ports, Deputy Restoration Minister Timur Tkachenko said.

"Preparations are being made to reset projects in the Olvia and Kherson ports. Simultaneously, we are working on the Ukrainian Danube Shipping Company, which is crucial for strengthening its positions on the Danube transportation market and the provision of grain exports, especially in case of possible limited access to deep-water ports," Ukrainian media quoted Tkachenko's statement after a meetings with representatives of the International Finance Corporation (IFC).

Tkachenko thanked the IFC "for comprehensive support and direct involvement in the development of port infrastructure."

"As part of this cooperation, we continue to update the schedules for the implementation of concession projects, which will help determine the optimal timeframe for announcing concession tenders," he wrote.

He named the development of investment in Ukrainian ports, fleet modernization and attraction of private capital to finance the restoration and development of infrastructure among the priorities.

The Risoil Kherson company started managing the Kherson commercial seaport in 2020 under a 30-year concession. It was reported later that Jemal Inaishvili, a co-investor of Risoil Kherson that won the Kherson commercial seaport concession tender, withdrew from the project. He explained the decision with a delay in the port's transfer to the concessionaire.

Olvia port property was transferred to Qatari QTerminals Olvia on December 1, 2021, under a 35-year concession agreement. Company investment was estimated at 3.4 billion hryvni. It also planned to build a new tunnel under the railway in the Korabelny district in Nikolayev. That investment was estimated at 80 million hryvni.

The statement noted that public-private partnerships were not paused during the crisis, and new concession projects were prepared for the Odessa and Izmail ports.

Former Deputy Prime Minister, former Restoration Minister Alexander Kubrakov said at the Ukraine Recovery Conference (URC2023) in London that five large companies were showing interest in Chernomorsk seaport concession projects. It was reported, in particular, that the A.P Moeller-Maersk Danish transport and logistics company was interested in the concession of the port's container terminal.