Ukraine announces winner of first seaport concession tender

22 January 2020

Risoil-Kherson LLC was declared the winner of concession tender of Kherson Sea Port, according to a Ministry of Infrastructure Jan. 21 release. The concession agreement will be signed after receiving permits from the Antimonopoly Committee. According to the tender results, the winner takes the seaport in concession for 30 years and commits to investing UAH 300 mln (about USD 12 mln) within 4 years into the seaport and UAH 18 mln (about USD 0.5mln) in local infrastructure. The company will also make annual concession payments consisting of UAH 12 mln fixed amount (about USD 0.74 mln) and an additional 7% of net revenue from concession operations. Risoil-Kherson LLC is a consortium of Petro Oil and Chemicals LLC (a company of Georgian origin, according to Ukrainian media) and Swiss-based Risoil S.A.

 

According to the financial statements, Kherson Sea Port generated UAH 7 mln EBITDA in 2017 and negative UAH 13.8 mln EBITDA in 1Q18, while its net revenue was UAH 170.3 mln in 2017 and UAH 23.1 mln in 1Q18.

 

Andriy Perederey: The result of the first concession tender is a positive signal for Ukraine’s seaport infrastructure. The concession agreements will enable the upgrade of the state-owned seaport infrastructure and increase its efficiency. We expect that the concession-based investments will lead to an increase of cargo shipments through the seaport and its financial results.