On the 1st of December, 2021, the transfer of the integral property complex of SE “Stevedoring company “Olvia” and the corresponding property of SE “Ukrainian Sea Ports Authority” to QTerminals Olvia, a part of the QTerminals Group, for 35 years was completed, being the subject of a concession agreement, under the public-public partnership model.
QTerminals Olvia together with the Ministry of Infrastructure of Ukraine, the PPP Management office SPILNO, SE “Ukrainian Sea Ports Authority” and a group of consultants and advisors ensured compliance with the prerequisites of the concession agreement.
On the 2nd of December, 2021, QTerminals Olvia will start operating port assets subject to the concession.
As a result, one of the most promising ports of our country will get new modern infrastructure.
According to the concession agreement, QTerminals Olvia will invest about 3,4 billion UAH in the development of the port. Almost half of it will be spent on the development of the port within the next 3.5 years. This is the largest foreign direct investment in the port industry of Ukraine in the last 30 years.
Moreover, at least 80 million UAH will be invested in the development of infrastructure of the city of Mykolaiv.
QTerminals will modernize port infrastructure to improve the quality of provided services as well as the quality of related navigation and logistics services, thereby increasing the efficiency of the port. The project also entails the construction of new real estate on the territory of the enterprise, including a grain terminal or a universal transhipment complex with a design capacity of 2 million tons of grain cargo per year as well as the infrastructure/industrial real estate in the northern part of the port.
The project will enable the government to receive an annual concession fee of at least 80 million UAH (subject to indexing) and 0.75% of the net profit of the concessionaire. This is 16 times more than the seaport’s profit in 2019.
The agreement provides for the preservation of jobs for employees of the enterprise for a period of at least 6 years. The concessionaire is also required to give preference to the citizens of Ukraine during the recruitment process.
For the subsequent management of the concession agreement, the PPP Agency together with the International Finance Corporation (IFC) and the Public-Private Infrastructure Advisory Facility (PPIAF), engaged advisors to support the Ministry of Infrastructure of Ukraine and the SE “USPA”.
For reference:
QTerminals is an experienced seaport and terminal operator, which provides services, such as container, bulk and general cargo, RORO and livestock handling; offshore supply, and cruise transportation. Along with Hamad port, the flagship port of QTerminals in Qatar, and QTerminals Antalya in Turkey, QTerminals Olvia has become the third port asset of the QTerminals Group since its inception.
You can learn more about it at the Facebook page of the Ministry of Infrastructure of Ukraine – https://www.facebook.com/MinInfra.UA/
Images – https://mtu.gov.ua/content/proekt-koncesii-u-portu-olviya.html and https://www.facebook.com/MinInfra.UA/