The Specialized Sea Port "Olvia" in Mykolaiv will receive UAH 3.4 billion of investment from Qatar. QTerminals from Qatar has won the tender for the Olvia Port concession. It is a leading Qatari port operator.
"This is the second winner of the port concession this week. Investors are interested in projects in Ukraine. This means that the credibility of Ukraine is growing in the world. The concession implies not only investment flows in the port infrastructure, but also an increase of revenues to budgets of different levels for the entire period of effect of the concession agreement. It is important to note that the port remains in public ownership," said Prime Minister of Ukraine Oleksiy Honcharuk.
How will the Ukrainian budget benefit from the contract?
- Annual concession payments - UAH 82 million.
- Investment commitments - UAH 3.4 billion (during 5 years).
- Funds for development of local infrastructure of Mykolaiv region – UAH 80 million UAH.
As a reminder concession is a way of leveraging funding to the port, remaining it in state ownership.
QTerminals is a terminal operating company jointly established by Qatar Ports Management Company (Mwani Qatar with 51% shareholding) and Qatar Navigation (Milaha with 49% shareholding)
Mwani Qatar is responsible for managing Qatar's seaports and transport terminals. Also, the company provides assistance in navigating, towing, loading, unloading, cargo handling and storage. In addition, the company is also involved in the development of seaports and related services in accordance with international standards. Milaha is one of the largest and most diversified maritime and logistics companies in the Middle East with a focus on providing integrated transport solutions.
The tender for the concession of the property of the SE "Stevedoring Company "Olvia" and the Ukrainian Sea Ports Authority (USPA) was announced in October 2019. Applications were submitted by December 16, 2019.
The concession tender is granted for the term of thirty-five years.