Ukrainian Sea Ports Authority Improves Draft Documentation For Dredging Operations

24 February 2017 10:43

The Ukrainian Sea Ports Authority has met with dredging companies to present updated draft tender documentation for dredging operations. The new documentation, which is in accordance with international best practices, was prepared by a working group that included experts from the Ukrainian Sea Ports Authority, the European Bank for Reconstruction and Development, and the Arzinger law firm, the Ukrainian Sea Ports Authority announced.

The meeting was attended by representatives of the world's leading dredging companies – Tianjin Dredging Company (China), DEME NV (Belgium), Ilk Construction (Turkey), Jan De Nul NV (Belgium), Rohde Nielsen A/S (Denmark), Royal Boskalis Westminster NV (the Netherlands) – and their Ukrainian counterparts.

The participants in the meeting discussed the prescribed contractual obligations of the Ukrainian Sea Ports Authority and potential contractors for major and maintenance dredging in the ports of Yuzhny and the Chornomorsk. In particular, settlement terms and payment procedures have been re-defined, clear guarantees of performance of dredging work under contracts have been established, and the penalties for improper fulfillment of the terms, insurance risks, etc. have been specified.

According to Arzinger, the new documentation reflects the terms of the standard contracts of the International Federation of Consulting Engineers (FIDIC) while taking account of the requirements of Ukrainian legislation. "We used the terminology that is understandable to both FIDIC and Ukrainian supervisory and regulatory authorities," said Andrei Selyutin, head of infrastructure and transport practices at Arzinger.

The Ukrainian Sea Ports Authority’s acting head Raivis Veckagans spoke about the volume of dredging work in the two ports this year. "The volume of dredging works in the Yuzhny and Chornomorsk ports is really large. Their total budget is UAH 9.6 billion. Out of this, about UAH 1.665 billion is expected to be spent on in 2017 and the same amount in 2018," Veckagans said.

The first such meeting was held during Ukrainian Dredging Day at the American Chamber of Commerce on 3 February 2017, when the Ukrainian Seaports Authority presented the prospects for dredging work this year and the relevant tender principles to major dredging companies.