EBRD supports 35 year Port of Olvia concession project in Ukraine
Despite a challenging global economic outlook, Ukraine continues to attract leading international transhipping and stevedoring companies by awarding the second concession for seaport development and management since June 2020.
A 35-year concession for the seaport of Olvia, structured in line with best international practice, was signed today with QTerminals of Qatar, a terminal operating company providing container, general cargo, livestock and offshore supply services.
A precondition for the agreement was the introduction of a concession law in Ukraine in 2019, which regulates the concessional use of state and communal property and increases the efficiency of its use, as the legal framework for the project.
The European Bank for Reconstruction and Development (EBRD), through its Infrastructure Project Preparation Facility, provided technical assistance for the preparation of the law. Together with the government of Ukraine, the International Finance Corporation (IFC) and the Global Infrastructure Facility, the Bank helped organise the concessional tender and brought the project to a commercial close.
QTerminals will be responsible for operating and modernising the seaport until 2055 and it will invest more than US$120 million in port facilities. Additionally, up to US$2.9 million will go towards developing infrastructure in the city of Mykolaiv.
The concessionary will also develop robust environmental and social impact management procedures in line with best international practice, which will make Olvia a benchmark for the industry in Ukraine.
The Olvia concession project highlights new investment opportunities in Ukraine’s transport sector and puts the country on the map for international transhipping and stevedoring companies.
The EBRD is the largest international financial investor in Ukraine. To date, the Bank has made a cumulative commitment of almost €15 billion through 466 projects in the country.