A new concession project for the Chornomorsk seaport’s container terminal has been presented in Warsaw, Poland.
Ukraine’s First Deputy Minister of Development of Communities and Territories Aliona Shkrum presented the project to international investors. As reported by the CFTS portal, Shkrum, together with Deputy Minister of Development of Communities and Territories Andrii Kashuba, a team of government officials, partners from the European Bank for Reconstruction and Development (EBRD), International Finance Corporation (IFC), and leading legal advisors from EY, presented this project as one of the most ambitious public-private partnership initiatives in wartime.
"A concession is not privatization," emphasized Shkrum. "It is essentially a long-term lease under which the state retains ownership of the port terminal, but a private company invests, manages its operations, and shares profits, and it has serious social obligations."
According to Shkrum, the government's goal is to attract investment, modernize the port, ensure the flow of cargo, create jobs, and provide Ukrainians with a steady source of income and taxes.
A large team is currently working on the project. The IFC and EBRD are providing extensive preparation support, while experts from EY Ukraine are providing legal support and a clear and transparent framework for investors. The ministry oversees the process and makes policy and management decisions.
Shkrum said the concessionaire would be selected through an open auction based on the best price and terms.
The entire process is managed by the EBRD and IFC to ensure impartiality.
The new concession project for the Chornomorsk seaport’s container terminal was presented in cooperation with international financial institutions.
"For us, transparency and trust in the process - both by leading European, Arab, and other companies, and, of course, by Ukrainians - are of paramount importance," said Shkrum.
She emphasized that this is the first concession Ukraine has launched during wartime and serves as an example of how the country continues to initiate large-scale investment programs despite challenges.
The presentation was attended by over 20 companies from four continents, including world leaders with experience in managing major ports. These are companies that manage terminals in European ports from Barcelona to Antwerp, and one of the participating companies manages 54 terminals in ports around the world, including terminals near the Panama Canal.
"We have seen a strong interest in participating in the project and have analyzed the main issues and challenges for ourselves in order to inform political decisions. The most important things are clear rules, a transparent bidding process, and an open dialogue," Shkrum said.
This level of interest shows both confidence in Ukraine and the fact that "real investors and well-prepared projects are not afraid of war," she said. According to her, the war may delay profits and return on investment, but these investments are among the best in Europe.
The government's task now is to prepare similar projects professionally and secure the best terms for Ukraine, taxes, employment, port utilization, and economic development.
Next, the ministry must decide on the launch of a competitive selection process, define its criteria, set up a concession commission, and ensure balanced representation.
Only the best companies in the world with a good reputation, experience in this industry, and the power to implement large infrastructure projects will be allowed to participate, officials said.
According to them, participants will be selected based on qualification criteria to ensure that they have the best experience in port management in the world and meet Ukraine's expectations.
Shkrum expressed gratitude to the EBRD, IFC, and other partners for their outstanding work on the project.
As reported earlier, the Chornomorsk port recently hosted a working meeting of representatives of the Ministry of Development of Communities and Territories of Ukraine, advisors, a team from the SPILNO public-private partnership project office, the management of the state-owned Chornomorsk Commercial Seaport, and representatives of the Chornomorsk branch of the Ukrainian Sea Ports Authority (USPA). Discussions at the meeting focused on preparations for the concession tender for the port’s Terminal No. 1 and Container Terminal.
