EBRD and IFC to help modernise Ukraine's Black Sea port

The European Bank for Reconstruction and Development (EBRD) and International Finance Corporation (IFC) are supporting the Ministry of Infrastructure of Ukraine and the Ukrainian Sea Ports Authority in structuring and tendering a publicprivate partnership (PPP) to modernise the country's Chornomorsk Port on the north-western shore of the Black Sea. Private sectorled investment and modernisation of the port, one of the largest in the Black Sea region, could increase Ukraine's import and export capacity, boosting its trade competitiveness and economic growth.

The EBRD and IFC will help the Ukrainian government to prepare a comprehensive contractual framework, set bidding criteria and tender rules, and liaise with potential investors, paving the way for a successful tender. Ukrainian Minister of Infrastructure Oleksandr Kubrakov and Mark Magaletsky, EBRD Deputy Head of Ukraine, Sustainable Infrastructure, formalised an agreement to this end.

Mr Kubrakov said: "Regarding the development of ports, we focus on working with investors. Our partners, IFC and the EBRD, provide full support to this process. The Chornomorsk Port is the third-largest in terms of cargo volume in the country, so this concession project is especially important. In Ukraine, container transport has great potential for development, as it currently accounts for only 8.5 per cent of the total volume.

After finding an investor for the Chornomorsk Port and modernising the container terminal, it should be possible to almost double its capacity. This will be a powerful stimulus for the development of the region's economy and increase the competitiveness of Ukraine as an infrastructure hub."

Mr Magaletsky added: "We are very pleased to reach this new milestone in our PPP advisory work. Together with IFC, we recognise how critical port infrastructure is to the competitiveness of Ukraine. The benefits of thorough project preparation and a well-run PPP tender are significant.