The European Bank for Reconstruction and Development (EBRD) is restarting work on assisting the Ukrainian government to modernise the Port of Chornomorsk, which had paused after Russia invaded Ukraine last year.
The EBRD and International Finance Corporation (IFC) agreed in October 2021 to support the Ministry of Infrastructure of Ukraine and the Ukrainian Sea Ports Authority in structuring and tendering a public-private partnership (PPP) to modernise Chornomorsk Port on the north-western shore of the Black Sea.
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.
On Thursday, the ministry announced that all parties were resuming work on the development of feasibility studies for concession projects.
Private sector-led investment and modernisation of the port, one of the largest in the Black Sea region, could increase Ukraine’s import and export capacity. Ukraine is a major food exporter, and maintaining exports by sea and land is a key concern for its leadership.
"The task of the future investor is to effectively manage the terminals of the Chornomorsk seaport and develop them. What will the concession give the state? Ukraine will receive a concessional contribution and stable tax revenues to the budget every year. Private partnership will lead to significant investments, will allow to optimise transportation logistics and increase the quality of service provision," a ministry press release quoted Oleksandr Kubrakov, Deputy Prime Minister for the Reconstruction of Ukraine - Minister of Community Development, Territories and Infrastructure, as saying.
The EBRD, Ukraine’s biggest institutional investor, has stood resolutely by Ukraine since the start of the full-scale war by Russia, focussing its investments on energy and food security, trade, vital infrastructure, and support for the private sector – the “real economy”.
With generous support from shareholders and donors, the EBRD has increased its finance to the country, committing to invest €3 billion in 2022-23, of which it deployed 1.7 billion in 2022 as well as mobilising a further €200 million from partner financial institutions. It stands ready to play a key role in Ukraine’s reconstruction when circumstances allow.
