Legal Alert: Transport Infrastructure

CONCESSION OF SEAPORTS IN UKRAINE: FIRST WINNERS ANNOUNCED

Following the adoption of the Law on Concession signed by President Volodymyr Zelensky in October 2019, Ukrainian Ministry of Infrastructure announced winners in two concession tenders.

 

OLVIA SEAPORT (MYKOLAIV)

The concessionaire of the Olvia seaport in Mykolaiv, QTerminals* (Qatar), will invest UAH 3.4 billion into the development of the port over 5 years.

This is to become one of the largest foreign direct investments into the port industry of Ukraine since its independence.

The leading Qatari port operator will contribute UAH 82 mln of concession fees annually which is 16 times more than the total revenue of the port in 2019.

The winning bid also envisages UAH 80 mln investment into the development of the local infrastructure of Mykolaiv.

*QTerminals operates Qatar’s largest trading port, Hamad, worth more than $ 7 billion. In 2019, QTerminals processed 1,3 million TEU of container cargo.

KHERSON SEAPORT

Risoil-Kherson* became the winner in the concession tender for Kherson seaport. 4-year investment commitment reaches UAH 300 million.

The bid envisages UAH 12 million in one-time concession payment which is 44% more than the minimal requirement indicated in the tender conditions.

Additionally, the concessionaire commits to allocate 7% from the revenue in annual concession payments which is 10 times higher than the minimal bid.

The amount of investment into the infrastructure of Kherson will reach UAH 18 million which is almost 70% more than the minimal bid.

*Risoil-Kherson is a consortium of Petro Oil and Chemicals (Georgian Industrial Group) and RISOIL S.A. (Switzerland). The share of the Georgian group is 60%, the Swiss company – 40%.

 

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• Agreements with the winners are to be signed upon receival of the concentration permit from the Antimonopoly Committee of Ukraine
• Ukraine’s Ministry of Infrastructure announced the start of the second concession round with details coming shortly.