The State Property Fund of Ukraine (SPFU) is initiating the creation of a modern rehabilitation and wellness complex based on the famous Kuyalnik sanatorium in Odesa through the implementation of public-private partnership. The new Kuyalnyk Rehabilitation Hub is set to become a center for medical and health rehabilitation that meets international standards.
This is reported by Finway
Conditions for Attracting Investors and Financial Model
The Kuyalnik sanatorium remains state-owned, as there are no plans for privatization. Private businesses are invited to participate in financing, professional management, modernization of the facility, and the implementation of European service standards.
It is expected that investments in the project will range from 800 million to 1.2 billion UAH. The implementation period is estimated to be from 3 to 5 years, with a payback period of 7 to 10 years. After full launch, the projected annual revenue of the complex could reach 180–250 million UAH.
According to calculations, modernization will increase tourist flow to 40–60 thousand people per year, which is 30–40% more than previous figures. The average occupancy rate of the accommodation is expected to be at 65–75%.
Infrastructure Improvement and Social Mission
The SPFU emphasizes that the therapeutic properties of the brine and sulfide mud of the Kuyalnik estuary even exceed those of the Dead Sea. These natural resources will serve as the foundation for creating a powerful medical base for the new hub. Special attention is given to the development of an inclusive space for comprehensive rehabilitation of Ukrainian veterans, which will be a key social mission of the updated resort.
“This project is about a new model of state management of state capital: we are opening the doors for investment to save what cannot be preserved by other means. We cannot allow assets to deteriorate; we must find mechanisms for their preservation, development, and contribution to the country’s economy.”
It is worth noting that the launch of this public-private partnership at the beginning of May is part of the Fund’s new strategy aimed at restoring facilities that remain state-owned but require significant investment. A similar approach has already been announced for the palace of the Counts of Schönborn (‘Carpathians’) in Transcarpathia, where modernization is also planned to be conducted with private funds.