EBRD, IFC support first concession project in Ukraine
Ukraine's first concession project, structured in line with best international practice, has been signed.
The consortium of Ukrainian stevedoring and agro-industrial company RISOIL, and the Georgian Industrial Group was awarded a 30-year concession for the seaport of Kherson following an open international tender.
A precondition for this agreement was the introduction of a concession law in Ukraine in 2019 that regulates the concessional use of state and communal property and increases its efficiency, as the legal framework for the project.
The European Bank for Reconstruction and Development provided technical assistance for the preparation of this law. Together with the government of Ukraine and the International Finance Corporation, the bank helped organise the concessional tender and brought the project to a commercial close, making it the first ever public-private partnership in Ukraine.
The consortium will be responsible for the operation and modernisation of the seaport and will invest around $15 million in port facilities and supporting infrastructure by 2030. It will have to increase the volume of cargo transhipment, up to 80% of which must be delivered by rail or water transport modes to improve the environment in the city of Kherson. RISOIL will also be aiming to introduce modern logistics and transport solutions for the seaport to limit the volume of cargo transport by road and relieve congestion for the city.
