May 18, the state enterprise Ukrainian Seaports Authority (SE USPA) signed a contract with China Harbour Engineering Company Ltd (CHEC) on carrying out dredging operations at the Yuzhny seaport located in Yuzhnyi city, Odessa region. The document was inked in the presence of Prime Minister of Ukraine Volodymyr Groysman and Minister of Infrastructure of Ukraine Volodymyr Omelyan.

“Having this opportunity to sign a contract designed to improve the infrastructure of Ukraine with participation of Chinese company is of paramount importance as well as to see the fact that business circles of China became convinced that Ukrainian legislation stipulates for fair, open and transparent participation in public tenders as well as to win honestly  this dredging tender was conducted using Prozorro system which is transparent and competitive," noted Volodymyr Groysman before signing the contract.

Under the terms of the contract, the customer is a subdivision of the SE USPA located in Yuzhnyi city, the contractor - China Harbour Engineering Company Ltd. The contractor will conduct activities aimed to increase the depth of the approach channel from 16 to 19 meters and to extend inland water approaches to a depth of 16 meters to the deep-water quays № 23-25. The project will be finished in March 2018 with the total budget to the tune of UAH 1.065 billion.

“The dredging works which would be done by your company are strategically important and is an ambitious project for Ukraine, which increases the capacity of the Yuzhny seaport. It is also additional opportunities for the development of the national economy, which is set as one of the priorities for the Government", stressed the Prime Minister while addressing to the representatives of the CHEC.

Background

The project on dredging of water area of Yuzhny seaport envisages the creation of water approaches (depth 19 m) and inland water approaches (depth 16 m) by the state enterprise Ukrainian Seaports Authority for the newly built quay № 25 which will ensure the functioning of one of the largest grain terminals in Ukraine, the construction of which is provided by the company MV Cargo (in partnership with Cargill).

This project consists of interrelated construction tools of specialized sea terminal for transshipment of grain cargoes and products of their processing, construction of quay № 25, as well as the creation of a shipping operating water area of the aforesaid quay and navigable approach channel to it with depths of 16 meters.

The demonstrated capacity of port facilities up to 5 million tons per year in the first stage and optionally from 2 to 4 million tons per year in the second stage.

The implementation of the project will allow to create over 350 new jobs as well as to to fill the revenue part of budgets of all level to the tune of USD 16 million per year and will allow to provide additional resource to the sum worth USD 9.2 million a year in port charges.

The dredging tender was conducted on 20 April 2017, using Prozorro system which has ensured absolute transparency and openness of the process.