Cooperation between the Government of Ukraine and International Finance Corporation regarding the advancement of the public-private partnership projects in Ukraine

Published on: 09.11.2021
Category: PPP News

On the 8th of November, an online meeting took place between the Prime Minister of Ukraine Denys Shmyhal and the Managing Director, Executive Vice President of the International Finance Corporation (IFC) Makhtar Diop. The goal of the meeting was to discuss the advancement of the PPP mechanism in Ukraine, particularly regarding infrastructure and energy development. 

“Ukraine is actively rebuilding infrastructure and seeks to develop a public-private partnership (PPP) mechanism” – noted the Prime Minister. The Head of Government stressed the high level of cooperation with the IFC on the preparation of pilot projects for the concession of the seaports “Olvia” and “Kherson”. Taking into account the positive results of the concession, cooperation will be continued regarding the preparation and implementation of concession projects of the “Sea Commercial Port” Chornomorsk” terminals.

It should be noted that two projects are currently being prepared in the aforementioned port, namely I and container terminal Сoncession and the Development of the Rail-Ferry Terminal. The goals of those projects are to create a modern terminal to transship containers and general cargoes, and to modernize the existing capacities of the railway-ferry complex respectively. 

The Government of Ukraine hopes for fast and high-quality implementation of other PPP projects in Ukraine, in particular concessions of railway stations and airports. Regarding the latter, the PPP Agency, with the support of IFC, has conducted preliminary research on the development of the infrastructure of “Kherson”, “Rivne”, “Vinnytsia” and “Chernivtsi” airports under the PPP model.

Also, in the road industry preliminary research and preliminary market consultations have been conducted to assess the interest of qualified potential investors in 6 pilot PPP projects in the road sector, selected based on the results of the study “Road PPP Program in Ukraine – ways to engage the private sector to improve, renovate and maintain roads” conducted by experts from the World Bank and the International Finance Corporation (IFC) with the support of the Global Infrastructure Fund (GIF). According to the Head of Government, the Ministry of Infrastructure of Ukraine and IFC have agreed on the first two sections of the road for future PPP projects: Lutsk – Poland’s border (section M-07/M-19) and Kharkiv – Zaporizhia (M-29/M-04/M-18).

Another field of critical importance for the advancement of the PPP mechanism in Ukraine will become irrigation, including the restoration of irrigation systems. The impetus for this was the COP 26 UN Climate Change Conference, hosted in Glasgow. The Prime Minister has noted that the development of irrigation systems is an important step towards adapting to climate change.

You can read more about the event on the Government website:

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