EBRD and IFC to support upgrades to Chornomorsk port in Ukraine
The European Bank for Reconstruction and Development (EBRD), as well as the International Finance Corporation (IFC), have extended their support for the rehabilitation of the Ukrainian port of Chornomorsk on the northwestern shore of the Black Sea.
The EBRD and the IFC will support the Ukrainian Ministry of Infrastructure and the Ukrainian Sea Ports Authority in a tender for a public-private partnership (PPP) for the modernization of the port.
Along with private sector investments, this upgrade is expected to improve the country’s import and export capacity and hence its trade competitiveness.
The Ukrainian government will receive support from EBRD and IFC to draft a comprehensive contractual framework, define bidding criteria and bidding rules, and interact with potential investors.
Ukrainian Minister of Infrastructure Oleksandr Kubrakov said: “In Ukraine, container transport has great potential for development, as it currently only accounts for 8.5% of the total volume.
“After finding an investor for the port of Chornomorsk and modernizing 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 will increase Ukraine’s competitiveness as an infrastructure hub.
The Chornomorsk container terminal and the railway-ferry complex concession will contribute to the modernization of the current assets of the terminal.
It will also optimize its operations and develop additional services for owners and freight carriers.
Improved freight logistics and “higher quality” port services are expected to attract global shipping operators.
Last year, the EBRD, in collaboration with the IFC and the Global Infrastructure Facility, worked with the Ukrainian Ministry of Infrastructure to structure concessions for two medium-sized Black Sea ports, namely the ports of Kherson and ‘Olvia.
Over the past two years, the EBRD has invested nearly $ 2.33 billion (€ 2 billion) in the Ukrainian economy.