The State Property Fund of Ukraine (SPFU) has launched a pilot project to transform the Kuyalnyk Sanatorium in Odesa region into a modern medical rehabilitation and wellness complex of international standard. The project will be implemented in the format of a public-private partnership and envisages the creation of the Kuyalnyk Rehabilitation Hub with private investment, while keeping the facility in state ownership.
According to the SPFU, the project model provides for transferring the functions of managing and modernizing the complex to a private investor, while maintaining strategic control by the state. The key objective of the initiative will be to develop modern rehabilitation infrastructure, including through the use of the unique therapeutic resources of the Kuyalnyk Estuary. A separate focus is planned on creating conditions for the recovery and rehabilitation of veterans.
As part of the project preparation, representatives of the State Property Fund, relevant institutions, and trade unions have already visited the sanatorium to assess its current condition and modernization potential. The SPFU notes that the launch of the project is part of a broader strategy to develop public-private partnerships for assets that are not subject to privatization but require significant investment to upgrade their infrastructure.
Investments in the modernization of Kuyalnyk are expected to range from UAH 800 million to UAH 1.2 billion, while project implementation is expected to take three to five years. At the same time, the payback period is estimated at seven to ten years, making the project a long-term investment asset in the medical and wellness tourism sector.
After modernization, a significant increase in tourist flow is expected — by 30–40% within three years, reaching 40,000–60,000 visitors annually. The average occupancy rate of the room stock is expected to reach 65–75%, while the annual revenue of the renovated complex may amount to UAH 180–250 million.
The SPFU began actively developing the public-private partnership segment in early May, defining it as a tool for attracting investment into strategic state-owned assets that cannot be privatized. In addition to the Kuyalnyk Sanatorium, the pilot list also includes the Schönborn Palace in Zakarpattia region.
Thus, Kuyalnyk may become one of the first large-scale projects in Ukraine where a state-owned health resort will be transformed into a modern international rehabilitation center with the involvement of private capital and a focus on medical tourism and rehabilitation medicine.
