In March, MTBS (Maritime & Transport Business Solutions), local partner Interlegal and other consortium partners, started the feasibility studies and transaction advisory services for two pilot port concession projects in Ukraine.
The main stakeholders are the Ministry of Infrastructure of Ukraine, Ukrainian Seaport Authority (USPA), the Ports of Olvia (former Oktyabarsk) and Kherson, the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD).
The project, which was initiated at the end of 2017 through the signing of a memorandum of cooperation between USPA and the EBRD, aims to develop the Ukrainian port infrastructure by attracting private sector investments through modern port concessions.
The first pilot concession project concerns the State Enterprise Stevedoring Company Olvia, which is strategically located near the largest metallurgical and agricultural products producers in the southern region of Ukraine near the Black Sea. The port performs cargo handling services for all types of commodities with the exception of containers. The second pilot concession project concerns the Kherson Commercial Sea Port, which is located near the mouth of the Dnipro river. The port of Kherson is specialized in the handling of bulk and packed chemical and mineral fertilizers.
The full feasibility study builds upon the preliminary viability assessment, which was successfully finalized in May 2017. During the preparation of the tender, the consortium, which consists of legal-, technical-, and financial advisors, will evaluate different public-private partnership structures for both pilot concession projects.
The project aims to sign two concession agreements prior to the Presidential Elections in March 2019.