Risoil company has won a competition for a concession in the port of Kherson.

The tender commission under the Ministry of Infrastructure of Ukraine announced Risoil-Kherson LLC as the winner of the tender relating to transferring into concession assets of state stevedore «Kherson Sea Commercial Port».

The concession competition consisted of several stages, including pre-qualification and qualification, which were passed successively by all participants. According to the results of the tender, the financial offer of Risoil-Kherson turned out to be the strongest, as well as far exceeding the minimum amounts indicated in the tender documentation.

For example, the minimum concession payment rate proposed by the Ministry in the tender documentation was 0.73%. At the same time, the rate indicated in the proposal of Risoil-Kherson is almost 10 times higher. Thus, the concession payment of Risoil-Kherson to the State will amount to 7% of revenue annually, in addition to a fixed amount of about 12 million UAH.

In addition, the most important selection criterion for the winner of the competition was the support of local infrastructure and self-government. We are pleased that our proposal on this criterion, as well as on social and labor issues, was the highest.

The government announced the start of tenders for pilot concession projects in the port industry on September 12, 2019. An agreement will be concluded with the winner of each tender, the parties to which will be the Ministry of Infrastructure, the Ukrainian Sea Ports Authority, the winner of the tender, as well as the company (SPV, the so called special purpose vehicle), which will be created and registered as the winner of the tender in Ukraine for the implementation of the project.

Risoil S.A.