A key stage of the concession competition has begun in the port of Chornomorsk — the competitive dialogue procedure regarding the transfer of the first (universal) and container terminals for concession. This process is intended to be fundamental in determining the optimal model of cooperation between the state and private investors.
This is reported by Finway
The importance of competitive dialogue for future concessions
Over the course of 75 days, the competition commission, together with market representatives, will analyze the basic conditions proposed by the state, while investors will provide their professional feedback and suggestions regarding future cooperation. This allows for the creation of a balanced and viable contract that takes into account the interests of the state, business, and the community. Following the dialogue, the competition commission, along with advisors from the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC), will process the received proposals to prepare the final version of the concession agreement and instructions for participants. After the documents are approved, participants will receive additional time to prepare legally binding competition proposals.
“The competitive dialogue is a key stage in the implementation of the project. Over 75 days, we are working with the market to develop the optimal concession model: the state provides the basic conditions, and investors provide their professional feedback and proposals. This allows us to form a balanced, viable contract that considers the interests of the state, the community, and business,” said Oleksii Kuleba, Deputy Prime Minister for Reconstruction and Minister for Community and Territorial Development of Ukraine.
The scale and prospects of the project in the port of Chornomorsk
The project in the port of Chornomorsk could become the largest example of public-private partnership in Ukraine’s port sector and the first of its scale to be implemented during a full-scale war. Its goal is to attract a strategic investor for the modernization of infrastructure, improve the efficiency of terminal operations, preserve over a thousand jobs, and create stable revenues for state and local budgets.
As part of this project, hundreds of millions of dollars in investments are planned for the modernization of docks and port equipment, with expected revenues of over $1.1 billion to the budgets over 40 years, as well as the restoration of container transportation to 250,000 TEU annually. Applications for participation have already been submitted by over 40 international port operators and investors from four continents, ensuring high competition and contributing to obtaining the best conditions for Ukraine.