This year, the Ministry of Development may announce a competition to select a concessionaire for the port of Chornomorsk

The Ministry of Development of Ukraine, in cooperation with the IFC and the EBRD, is preparing two concession projects in the port of Chornomorsk.

The concession project for the first and container terminals in the port of Chornomorsk is already at the stage of preparation for the competition, the Ministry of Development of Communities and Territories of Ukraine reports.

This was discussed during a meeting with representatives of the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD).

The parties discussed the status of preparation of concession projects in the port of Chornomorsk. Also during the meeting, they presented the feasibility study (FEA) for the concession project for the port’s ferry terminal.

“Despite the ongoing war, the potential concession of the terminals of the port of Chornomorsk is already attracting the attention of leading global investors in the port sector, who have a long-term vision and would like to transform the concession assets into modern world-class terminals. This is a rare and real opportunity,” emphasized Deputy Minister of Community Development Maryna Denysiuk.

According to her, the project is crucial for maintaining economic security and increasing export potential.

The concession aims to optimize the use of terminals and assets of the port of Chornomorsk. Namely, to increase the use of underloaded terminals and port assets, increase their operational potential through access to private investment capital, private sector management experience and high commercial flexibility.

“Concession projects for Chornomorsk could potentially become one of the first concession competitions after the start of full-scale Russian aggression. They could attract a leading global investor in the port industry and become one of the first success stories, which would be a very important signal to the market,” said Andriy Kashuba, Acting Head of the State Enterprise “Sea Ports Administration of Ukraine”.

The European Bank for Reconstruction and Development and IFC, together with the project consultants, have already prepared the feasibility study for the concession. In the near future, the feasibility study will be officially sent to the Ministry for internal and external processing and approvals, which should be completed approximately in April of this year.

“Subject to successful approval of the design, the Ministry may announce a competition for the selection of a concessionaire this year,” Andriy Kashuba emphasized.

During the preparation of the feasibility study, special attention was paid to the budget efficiency of the project, social and environmental assessment, job preservation, and attraction of new investments in the development of the ferry terminal in the port of Chornomorsk.

As a reminder, the process of preparing for the implementation of concession projects in the Chornomorsk port began even before the full-scale Russian invasion. However, in 2022, the process was suspended and resumed again in 2023 by the Ministry of Community and Territorial Development of Ukraine.

Previously, the Ministry of Development and the EBRD discussed the Black Sea Port concession.