In the framework of the implementation of pilot concession projects at the seaports Olvia and Kherson, the Coordination meeting with a consortium of international consultants was held today at the Ministry of Infrastructure of Ukraine. The consortium of international consultants were elected by the EBRD to develop feasibility studies and prepare tender documents for both projects. Volodymyr Omelyan, the Minister of Infrastructure of Ukraine headed the coordination meeting. Representatives of the Ukrainian Sea Port Authority, the project office SP3ILNO, Ukrzaliznytsia, SE SC «Olvia», SE "Kherson Sea Port «,  Nadiya Kaznacheyeva, the advisor to the Minister,  representatives of the EBRD and IFC international team and experts from the best international companies took part in the meeting. »Today, on March 13, a new phase in the implementation of pilot public-private partnership projects (PPP) in Ukrainian seaport industry starts. The Ministry is glad to announce the official launch of the two pilot PPP projects — in SE «Stevedoring company „Olvia“ and SE „Kherson sea port“, which will open the concession path and, we hope, will benefit to the modernization of the industry. In the coming weeks, a team of experts and consultants will begin the development of feasibility studies for projects. This stage requires special attention. We are convinced that a structured and transparent process that regulates interaction between government and business is important for both sides», — the Minister of Infrastructure of Ukraine said. Volodymyr Omelyan stressed, that the Ministry of Infrastructure of Ukraine initiated the development of the draft law «On Concessions», which was approved by the Government at the end of 2017 and should to be submitted to the Parliament in March 2018. «Concession projects in the ports of Olvia and Kherson are very important not only for the ports and industry, but for the state too. If these projects will held successfully — this will be an unequivocal success for Ukraine and a signal for foreign investors. And if the projects will fail, then we can forgot about the concession in Ukraine for years»,— the Minister stressed. Forasmuch as the seaports are an important component of Ukraine's transport infrastructure and export potential, the development of port infrastructure by attracting private investments is one of the strategic tasks of the Ministry of Infrastructure and the Ukrainian Sea Ports Authority. "Taking into account an international experience, the concession as a mechanism of public-private partnership is an effective method to attract private investments to the development of port infrastructure. But for Ukraine it is a quite new, and therefore requires detailed elaboration. The preliminary feasibility studies of projects was started at the end of 2016 and today, due to the joint work of the Ministry of Infrastructure of Ukraine, SP3ILNO office and USPA we proceed to the final preparatory stage of concession project implementation in Olvia and Kherson ", — the head of the USPA Raivis Veckagans noted. The projects envisage attraction of private investments in the amount of up to USD 45 million for the modernization, re-equipment and increasing of the transshipment capacity of the SE "Kherson Sea Port ";  attraction of about USD 250 million for the construction of a new terminal and berths in the SE «Olvia». It will increase the capacity of cargo handling, ensure the development of the related infrastructure (railway station, electricity grids, roads), and, as a result, will increase economic activity in the region. With the support of the World Bank and the EBRD in May 2017, the development of preliminary feasibility studies of pilot concession projects was successfully completed, which showed the expedient of further detailed development  of feasibility studies. At the end of 2017, a Memorandum of cooperation between the Ministry of Infrastructure of Ukraine and IFC was signed, as well as an agreement between the State Enterprise «USPA» and the EBRD on further preparation of feasibility studies. In February 2018, the EBRD elected a consortium of international consultants to develop feasibility studies and prepare tender documents for both projects.

On November 27, 2017, in London, the Ukrainian Sea Ports Authority (USPA) and the European Bank for Reconstruction and Development (EBRD) in the presence of the Minister of Infrastructure of Ukraine, Volodymyr Omelyan signed an agreement on financing the development of a feasibility study (FS) for the concession projects of SE "Stevedoring Company «Olvia» and SE «Kherson Commercial Sea Port». According to the Minister of Infrastructure of Ukraine, Volodymyr Omelyan, the EBRD undertakes to cover the costs of technical assistance in the organization of these concession projects, as well as the preparation of fair and transparent tenders to attract private investors to transfer into concession two state-owned stevedoring companies. «World companies in Ukraine are not a fantasy and not a ghost. This is the future that we bring closer daily. I am grateful to the EBRD and other international partners who believe that Ukraine is being changed, and we are ready to guarantee fair and transparent rules in the market. I am convinced that great concession projects in Ukrainian ports are a matter of immediate prospects,» stressed Volodymyr Omelyan. «The implementation of concession projects in the maritime industry is a logical continuation of the port reform, launched in 2013. The development of feasibility studies and tender documentation at a high professional level together with leading international financial organizations will guarantee the transparency of the tender and the economic validity of the concession of state stevedores. A successful implementation of pilot projects for the industry will create the basis for a long-term investment in the development of ports on understandable and mutually beneficial terms for both business and the state. Only according to preliminary estimates, the transfer of two state stevedores to the concession will help increase cargo flow by at least 5.5 million tons and attract investments of up to $ 140 million,» said Raivis Veckagans, the Head of the USPA. To recall, on November 14th, 2017, in order to develop public-private partnership (PPP) in the port industry, the Ministry of Infrastructure of Ukraine and the International Finance Corporation (IFC) signed a Memorandum of Understanding. IFC will help to structure PPP projects in two Ukrainian ports – SE "Stevedoring Company «Olvia» and SE «Kherson Sea Commercial Port». IFC will also explore the possibility of structuring a PPP project for the development of a railway ferry complex at the SE “Chornomorsk Commercial Sea Port”. Earlier, in June 2017, the Ministry of Infrastructure of Ukraine approved the plans for the preparation and implementation of pilot projects for the transfer into the concession of state property of SE "Stevedore Company «Olvia», SE «Kherson Commercial Sea Port», railway-ferry complex of SE «Chornomorsk Commercial Sea Port» and property of SE «Ukrainian Sea Ports Authority».

Odessa, Ukraine (PortSEurope) January 27, 2018 – The Ukrainian Sea Ports Authority (USPA) has received the status of observer of the European Sea Ports Organization (ESPO). May 30 to June 1, USPA will take part in the annual ESPO conference and work of the ESPO technical committees. “The entry of the USPA into ESPO is an important step in Ukraine’s integration into international transport infrastructure. Ukraine is now officially part of the European port community. In addition, membership in the ESPO will enable us to adopt the best European practices of port operations. This step is also important from the point of view of implementation of the roadmap on the implementation of EU regulatory documents in the field of maritime transport, approved by the Cabinet of Ministers of Ukraine”, said Raivis Veckagans, head of USPA. As Ukraine is not an EU member state, USPA joins ESPO with observer status. This means that USPA receives the right to delegate one of its representatives to the ESPO General Assembly, to attend and participate in the work of all technical committees, to have access to the ESPO ‘s internal database with the latest information on EU policies, in the field of investments and grants, as well as the opportunity for individual requests for information through the Secretary-General of the Organization. The European Sea Ports Organisation is the principal interface between European seaports and the European institutions and its policy makers. ESPO represents the port authorities, port associations and port administrations of the seaports of 23 Member States of the European Union and Norway at EU political level. ESPO also has observer members in Iceland and Israel.

Odessa, Ukraine (PortSEurope) November 27, 2017 – On November 21–23,  2017, at the invitation of the Embassy of the Kingdom of the Netherlands in the framework of the Dnipro Development Initiative, a visit of the management of the Ukrainian Sea Ports (USPA) to the port of Rotterdam took place. The purpose of the visit was to get acquainted with the experience of dredging works, the port management system and other related port issues. Top managers of USPA met with the Ambassador of Ukraine to the Netherlands, Vsevolod Centsov, visited the newly created port of Rotterdam Maasvlakte2, and met with representatives of the local port administration and the business community. USPA agreed to cooperate with the port of Rotterdam in terms of advice on the calculation of port charges. In addition, in order to increase the involvement of Dutch companies in USPA projects, the Embassy of the Netherlands expressed readiness to hold special trainings for representatives of Dutch companies with a view to improved preparation of tender documentation and their participation in tenders of USPA in the Prozorro system. “We are systematically expanding international contacts. The Port of Rotterdam is the number one port in Europe, which operates under the Landlord model. The port administration has undergone a corporatization procedure, and from year to year, the port is increasing cargo transshipment. Our cooperation with the port will help attract high-level expertise in order to organize an optimal port management system, qualitative dredging works, a clear methodology for calculating port fees, etc “, said the head of the AMU. Raivis Veckagans added that the Netherlands has unique experience in the development of inland waterways, which may be useful for reforming the river industry in Ukraine. “USPA is ready to make efforts to develop the rivers, because this issue is important in terms of diversifying the ways to deliver goods to ports. The successful experience of dredging in ports could be extended to inland waterways, using the best practices of our European colleagues,” said Raivis Veszkagans. The Dnipro Development Initiative is a partnership between the Ukrainian government and potential donors, in which the Netherlands provides its unique expertise in the Water sector. This expertise will help to develop projects that can be financed by International Financial Institutions (IFI) like the World Bank, EIB and EBRD, and businesses through Public Private Partnerships (PPP). The European Union is also a partner in the innovation of the governance of waterway management.