Ukraine’s first seaport concessions in Kherson and Mykolaiv oblasts have brought Ukraine $131 million in investment, Economy Minister Ihor Petrashko said during the briefing on Dec. 29.
Petrashko expects that more international businesses will invest in Ukrainian infrastructure next year becuase the parliament passed a law on ‘investment nanny’ earlier in December. The law offers tax benefits and allows investors to work with managers who help them communicate with state officials and make sense of Ukrainian bureaucracy.
Not only foreign businesses but the Ukrainian government plans to invest in the country too. In 2021 Ukraine wants to put $141 million in investment projects — that is 3,5 times more than in 2020. Nearly $88 million the government wants to spend on medicine, Petrashko said.
During the annual Ukrainian Investment Roadshow on Dec. 10, Minister of Infrastructure Vladyslav Kryklii said that Ukraine also plans to put other seaports, seven railway stations, and 1,400 kilometers of highways up for concessions or privatization over the next 3-4 years.
As for today, only two Ukrainian seaport won concession tenders.
Ukraine signed a 35-year concession of Olvia seaport in Mykolaiv Oblast with Qatari port operator QTerminals earlier in August. A 180-hectare seaport will bring Ukraine $140 million in investment in the next five years, as well as another $3.3 million every year as a concession fee from QTerminals, according to Kryklii.
Another Ukrainian seaport — in Kherson — receives investment from Swiss agriculture holding Risoil S. A. Ukraine signed a 30-year concession of Kherson seaport in June. Swiss company wants to develop the Kherson seaport as a river logistics hub, the head of the company, Shota Khajishvili, told the Kyiv Post earlier in July.
Businesses that won the concession auctions have now the right to use the state property for commercial purposes but will have to invest a total of $630 million.
Concessions are good for Ukrainian infrastructure. With their help, Ukraine can repair seaports, while not spending money from the budget.
Right now Ukraine prepares the concession of the Chornomorsk seaport in Odesa Oblast. Additionally, the state plans to sell three smaller ports on the Black Sea — Skadovsk, Ust-Dunaysk and Belgorod-Dniester — to private investors becuase they are highly unprofitable and don’t even have money to pay salaries to their employees.
