Kyiv, Ukraine, August 9, 2021—With Ukraine's growing role in the international maritime shipping, the country's port infrastructure is a draw for both domestic and foreign investors. In alignment, successful implementation of Ukraine's first port concessions is key to improving its business climate while boosting trade competitiveness, improving port operation practices, and accelerating the country's economic growth.
Following the closing of the pilot concessions of Kherson and Olvia in 2020—two mid-sized ports on the Black Sea—IFC will now support the Ministry of Infrastructure (MIU), the Ukrainian Sea Ports Authority (USPA), and the State PPP Agency in managing the agreements and building capacity for the efficient execution of the public-private partnership (PPP) projects. IFC's extensive global experience in supporting the development and implementation of PPPs will help Ukraine set a precedent for future concessions in other sectors.
"Despite operating in a challenging environment, the successful closing of the Olvia and Kherson seaport concessions prove that Ukraine is all set for a private-sector led transformation of the port sector," said Niko Gachechyladze, Director of the State PPP Agency. "We believe that the World Bank Group's experience in PPPs will help Ukraine fulfill the concession agreements seamlessly and start operations in a timely manner."
Further, IFC and the World Bank, supported by a grant from the Public-Private Infrastructure Advisory Facility (PPIAF), will help the Ukrainian government establish an efficient contract management system. The aim is to address any technical, legal, regulatory or environmental and social governance issues that may arise during the post-transaction period of Olvia and Kherson concessions.
As part of this activity, IFC will work to increase the capacity of the MIU, Ministry of Economу and the USPA to efficiently monitor and report on the execution of PPP and concession agreements.
"IFC's longstanding experience in PPP transaction advisory allows us to serve as an effective bridge between public sector players (municipalities, local and national governments) and reputable private sector investors and operators," said Elena Voloshina, IFC Senior Country Officer for Ukraine. "This cooperation will help strengthen Ukraine's infrastructure through engaging the private sector and attracting timely investments."
IFC and Ukraine signed a memorandum of understanding in October 2019 to identify key sectors for the joint implementation of PPP projects. In addition to maritime infrastructure, IFC is analyzing PPP opportunities in the road, rail, energy, and health-care sectors, to help leverage private investments and promote the country's economic growth.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2020, we invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org
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For more information about the State PPP Agency, please visit https://pppagency.me.gov.ua/
For more information about the PPIAF, please visit https://ppiaf.org/
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