This March Ukraine announced the launch of the reform on the development strategy of ports. One of the most important aspects of Kiev authorities’ strategy consists in granting compensations to private operators who decide to invest in the development of the port infrastructure.
Potrstrategy.com informs that, a proper legislation is necessary for this measure to be valid and the Ukrainian Ministry of Infrastructure is already elaborating this legislation. According to a draft normative act, the investors interested in the port infrastructure will have to submit a business plan, to ask for the opinion of experts regarding the potential investment and their financial capacity will be rigorously checked.
Therefore, the 18 ports owned by the Ukrainian state can benefit from private infrastructure investments. Compensations will be granted by the state to private operators if investments will remain in the property of the state.
Moreover, the law of maritime ports which stipulates the privatisation of Ukrainian ports could become effective in June 2013, which, experts say, could create new port terminals or, under the concession law, even new ports could be deve-loped.
Private investors will have the opportunity to develop their projects in the Ukrainian ports in conformity with the concession terms and conditions, “one of the most efficient forms of cooperation between the state and the business sector being one of the best global practices. This has made possible the introduction of changes in the legislation on the state’s properties that could be put in concession”, informs the official web site of the Ukrainian Government.
Therefore, according to the adopted amendments, companies can provide services on the infrastructure of all the 18 ports that can become object of the concession. “Consequently, several projects can be delivered in concession in each of Ukraine’s ports”, the press release informs.
According to experts, PPP projects are the most important for the development of ports and thus several countries, such as Russia, Georgia, Latvia, Belgium and the Netherlands, are implementing such projects with private investors.
This March, Ukraine announced it planned to increase investments in the development of the port industry by UAH 25 Billion (EUR 2.37 Billion) until 2017. The announcement was made by the Deputy Minister of Infrastructure, Dmytro Demydovych, quoted by interfax.com.ua. According to him, the ministry he represents estimates an increase by 50 million tonnes in the flow of goods transiting the Ukrainian ports by 2017. The volumes would thus increase to 203 million tonnes of freight. Demydovych added that the state’s investments in the 18 ports it manages in 2012 amounted to UAH 1.7 Billion (EUR 161.5 Million), notable investments of which port infrastructures have also benefited.
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