Ukraine launches 40-year concession tender for Chornomorsk port

Ukraine’s Ministry for Development of Communities and Territories has announced the launch of a concession tender for the Chornomorsk port, with the concession term set at 40 years. The tender covers the “First” and “Container” terminals of the port, also referred to as the Universal and Grain marine terminals.

According to the ministry’s press service, the concession tender will be conducted in the format of a competitive dialogue. This approach allows shortlisted bidders to engage in discussions with the contracting authority to refine technical, financial and legal aspects of their proposals before submitting final bids.

The concession asset includes existing movable and immovable property recorded on the balance sheet of the state enterprise Chornomorsk Sea Commercial Port within the Universal and Grain terminals. It also covers movable and immovable assets, including berths Nos. 1–6, belonging to the state enterprise Ukrainian Sea Ports Authority within the same terminals.

In addition, the concession will include any assets created or constructed by the concessionaire during the term of the concession agreement. This encompasses newly built immovable property as well as movable assets acquired by the concessionaire in accordance with the terms of the contract.

The Ministry for Development of Communities and Territories will act as the conceding authority. Applications for participation in the prequalification stage must be submitted within 75 days from the date of publication of the tender announcement.

Under the terms of the concession agreement, the concessionaire will be required to invest at a level sufficient to ensure the necessary capacity and capabilities to achieve the cargo throughput volumes set out in the development plans. The concessionaire must also finance the reconstruction of an overpass leading to the port infrastructure, with investment of up to $4 million (including VAT), in order to obtain the right to close an internal road to third-party traffic. In addition, the concessionaire will be obliged to fulfill a range of social commitments, including retaining part of the workforce and maintaining wage levels for at least three years from the established baseline.

Legal entities interested in participating in the concession tender may submit requests to the tender commission for additional information or clarifications regarding the prequalification process, in accordance with the procedure and requirements set out in the instructions for applicants, the ministry said.

Tags: Chornomorsk