infrastructure - mfa.gov.ua

INFRASTRUCTURE SECTORAL OVERVIEW AND INVESTMENT PROJECTS

December 2020-February 2021

Infrastructure KEY FACTSUkraine’s geographic location, combined with 17 free trade agreements with 47 countries (including DCFTA with EU) makes it an important transit corridor for trade and travel between Europe, Asia and Middle East.

EASA certification

of cargo handled inseaports in 2019 (+18.4%)

this is the first arrival of loco-motives to UZ in 10 years

24.3 mln

containers handled in seaports in 2019 (+18%)

to the EU have been launched

share of low-сost in Ukraine's interna-

tional connection in 2018

included in theTNT transport system

will consult UZ on reforming the enterprise management mechanisms

AIRPORTSOF RAILWAYS SEA PORTS RIVER PORTSROADS

170k 22k 19 13 16km km

for the first time in the history of international partnership,

the EU opens its sky to a non-EU member

passenger traffic through the airports

of Ukraine in 2019 (+18.5%)

30%

160 mln t 1 mln TEU 8 ports

30 GE locomotives are already in Ukraine 21 rail routes Deutsche Bahn, the largest railway operator

and infrastructure owner in Europe,

AVIA

TIO

NRA

ILW

AYM

ARI

TIM

E Labor Force

Average Salary

417 K

$660

December 2020 - February 2021 CONTENTS

Infrastructure MAJOR PLAYERSCONTENTSDecember 2020 - February 2021

PUBLIC SYNERGY

OPENNESS

GOVERNING LAW CLAUSES

CONCESSION AS A MODERN PPP INSTRUMENT

TRANSPARENCY

ADVISORS & INDEPENDENT

EXPERTS

CREDITOR PROTECTION

FLEXIBILITY

QUALITY ASSURANCE

• Project finance opportunities• ROI safeguards

• A wide array of strategic assets open for investment

Can be contracted to support the preparation of

concession projects

Right to replace the concessionairein case of fundamental breach of contract

Option to convert state property lease into

concession

Several authorities mayconstitute a single

concessor for the purposes of the project

Both state and private entities can initiate concession projects

Freedom to choose governing law for contracts in the course of project implementation

• Prior stocktake/independent evaluation of the property• Prohibition on alienation/write-off of property after the decision on the need of concession is made

• Concessionaire selection according to the best international practices• Clear deadlines, stages and criteria• Creation of an online platform for concession procedures

In October 2019, the Verkhovna Rada adopted the Concession Law, which regulates conditions for the transfer of state and municipal property for business use. It increases the investment attractiveness of Ukraine and will lead to upgrade of infrastructure, including ports, airports, roads, etc.

InfrastructureREGULATORY POLICY

CONTENTSDecember 2020 - February 2021

Infrastructure REGULATORY POLICY

New international and internal routes for airlines promoted

Durability of roads infrastructure ensured

Fertile environment for PPP projects in infrastructure created

(the Law on Concession)

Inducing development of inland water transport, ship-building and ship-repairing

Enhancing the taxi industry competition

Ensuring fair competition in transportation industry

by liberalising aviation market rules(2018 - 2020).

by introducing a weight-in-motion technology (2019).

by introducing a competition-based procedure for concession tenders (2019).

by creating a framework to enhance the industry competition.

by introducing a favourable taxation regime.

by establishing an independent transport regulator.

Achievements

Plans


by introducing a weight-in-motion technology (2019).

Inland Water Transport Lawadopted (2020).

Investment PROJECTS

Name

Key financial indicators Project statusInvestment opportunity(choose among: privatization / concession / equity investment / debt financing)

Estimatedinvestment,$ million NPV, $

millionIRR, % Payback

period,years

Current Revenue, $ million

Assets,$ million

-

-

-

-

-

-

-

-

Privatization

Privatization

Concession

Concession

Concession

Concession

Concession

Concession

-

-

-

-

-

-

-

-

-

-

pre-feasibility study






207.1

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

0.1

0.1

-

-

-

-

-

-

1.4

0.8

-

-

-

-

-

-

Feasibility /pre-feasibility

study

Land plot, ha(owned,

in-use,rented)

UST-DUNAISK MERCHANT SEA PORT

CHERNIVTSI INTERNATIONAL AIRPORT

RIVNE AIRPORT

CONTAINER TERMINAL IN CHORNOMORSK SEA PORT

PASSENGER COMPLEX IN ODESA SEA PORT

FERRY TERMINAL IN CHORNOMORSK SEA PORT

KHERSON AIRPORT

SKADOVSK MERCHANT SEA PORT

1

2

4

6

8

3

5

7


Investment PROJECTS

Name

Key financial indicators Project statusInvestment opportunity(choose among: privatization / concession / equity investment / debt financing)

Estimatedinvestment,$ million NPV, $

millionIRR, % Payback

period,years

Current Revenue, $ million

Assets,$ million

-Concession - pre-feasibilitystudy

-- - - -

Feasibility /pre-feasibility

study

Land plot, ha(owned,

in-use,rented)

VINNYTSIA AIRPORT9


Google map location


CONTENTS

December 2020 - February 2021

STATEPROPERTY FUNDOF UKRAINE

ODESAREGION

PRIVATIZATION

Ust-Dunaisk Merchant Sea port

CONTACTS

INVESTMENTOPPORTUNITY:

SHARE FOR PRIVATIZATION

EMPLOYEES

PRODUCTION FACILITIES

MAIN FINANCIAL INDICATORS

The information provided in this document is prepared by the State Property Fund (hereinafter - the Fund)

solely for informational purposes in accordance with the Law of Ukraine “On Access to Public Information”.

The Fund is not responsible for the decisions of buyers, potential buyers or other persons and their

consequences, which will be based on the information provided in this document.

USD million 2017

-

2018

-

Revenue

EBITDA*

EBITDA margin, %

Net profit

Net profit margin, %

Total assets

Net debt

TOTAL ASSETS 2018

REVENUE 2018

1.4

-118.2%

-0.1

-92.1%

-0.09

0.10.2

0.05

24.5%

0.02

7.7%

1.4

ADDITIONAL INFORMATIONIn 2019, company processed 70.8K tons of cargo, including 51.2K tons of grain, 10.6K tons of chemicals and 9K tons of oil products

LAND PLOTowned: 0 ha in use: 207.1 ha rented: 0 ha

The Port renders handling, transport and forwarding services for transit, foreign trade and coastal shipping cargo, as well as storage service

The Port’s assets include: 46 real estate objects, 36 vessels and other vehicles, floating berths

The Port’s sea approach channel is 7 km long and leads to three anchorages for large tonnage ships where passable depths have been lost by present time. Another connecting channel (1.5 km long) leads from the port’s harbour into the Prorva Channel

100%

$1.4 mln

77

$ 0.1 mln

Privatization of Ust-Dunaisk Merchant Sea port that specializes in transshipment of cargoes from sea-going to river-going vessels via the Danube river

Google map location

CONTENTS



STATEPROPERTY FUNDOF UKRAINE

KHERSONREGION

PRIVATIZATION

Skadovsk Merchant Sea Port

CONTACTS

INVESTMENTOPPORTUNITY:

SHARE FOR PRIVATIZATION

PRODUCTION FACILITIES

MAIN FINANCIAL INDICATORS

The information provided in this document is prepared by the State Property Fund (hereinafter - the Fund)

solely for informational purposes in accordance with the Law of Ukraine “On Access to Public Information”.

The Fund is not responsible for the decisions of buyers, potential buyers or other persons and their

consequences, which will be based on the information provided in this document.

USD million 2017

-

2018

-

Revenue

EBITDA*

EBITDA margin, %

Net profit

Net profit margin, %

Total assets

Net debt

TOTAL ASSETS 2018

REVENUE 2018

0.8

-307%

-0.1

-307.0%

-0.04

0.10.07

0

-173.0%

0.1

176%

0.8

ADDITIONAL INFORMATIONPotential destinations that can be reached from the port include Turkey, Georgia, Romania and Bulgaria

The Port’s assets include: 55 real estate objects, vehicles, equipment, machinery, furniture and inventory

The Port’s transshipment capacity: 1,850 K tons

100%

$0.8 mln

$ 0.1 mln

Privatization of Skadovsk Merchant Sea port

Google map location

CONTENTS



ODESAREGION

CONTACTS

Ferry Terminal in

Chornomorsk Sea Port

KEY INVESTMENT HIGHLIGHTSUnique facility in Ukraine, which handles rail and auto ferry lines, as well as “ro-ro” vessels

The only railway ferry terminal in Ukraine and one of the largest ferry terminals in the Black Sea region

Non-specialized terminal with diversified cargo flow

Has unused capacity for cargo throughput growth

Characteristics: - 3 berths - 690 m quay length - 9.6 m depth

Annual capacity: - 4.5 million t in railway wagons - 150 K heavy duty trucks - 250 K units of vehicles

Concession of the ferry terminal in Chornomorsk sea port

INVESTMENT OPPORTUNITY:

PARTNERSHIP

ESTIMATED INVESTMENT

Public-private

To be determined during the auction

SOCIOECONOMIC EFFECT

Securing of Ukraine’s position as an important Eurasian hub at the

intersection of major intrenational transport corridors

PROJECT STATUSPre-feasibility study available

The information provided herein has been prepared in

good-faith for information purposes only and none

of it shall be treated as an offer or solicitation to deal

in any transaction.

Google map location

CONTENTS



ODESAREGION

CONTACTS

Container Terminal in

Chornomorsk Sea Port

KEY INVESTMENT HIGHLIGHTSOne of the few remaining opportunities for container business development in Chornomorsk sea port

Currently used for the bulk cargo handling but suitable for the container handling operations

Characteristics: - 75 ha terminal area - 6 berths - 11-15 m available depth

Capacity: - 1+ million TEU containers - 4+ million t bulk operations

Concession of the container terminal in Chornomorsk sea port


PARTNERSHIP


Public-private



Development of container transshipments that will increase

Ukraine’s trade potential

PROJECT STATUSPre-feasibility study in progress




in any transaction.

Google map location

CONTENTS



ODESAREGION

CONTACTS

Passenger Complex inOdesa Sea Port

KEY INVESTMENT HIGHLIGHTS

Characteristics: - 2.6 ha total area - 5 berths of 1,370 m total length and 9.5-11.5 m depth - 8 km distance from the airport

The Complex includes:- 1,000-seat Concert and Exhibition Hall with total

covered area of 4,970 sq m and open area of 4,000 sq m- Maritime Art Terminal with annual capacity of 1

million passengers and 23,600 sq m area- Hotel with 30,735 sq m area and 158 rooms- Yacht Complex with 15,500 sq m total area and 86

yachts capacity

Concession of the passenger complex in Odesa sea port


PARTNERSHIP


Public-private



Tourist potential increase in Odesa region

PROJECT STATUSPre-feasibility study in progress




in any transaction.

Google map location



CHERNIVTSIREGION

CONTACTS

Chernivtsi International Airport

CONTENTS


Current characteristics of the Airport: - Runway: 2,216 x 42 m - Terminal: 1,700 sq m - Traffic 2019: 77 kpax - Traffic CAGR: 16% (2012 to 2019)

The current runway length at Chernivtsi airport has potential to reach main European destinations with the current aircraft mix

Some ICAO compliances project related to the runway should be implemented: insufficient runway strip width and runway width

Full reconstruction and extension of the runway is still required

Current terminal prevents the promotion of traffic development without restrictions, so new terminal construction is needed

Concession of the Chernivtsi international airport


PARTNERSHIP


Public-private


Rapid expansion of passenger and cargo flights

Increase of passenger traffic to 400 people per hour

Improvement of the tourist potential of the region

Creation of over 1,000 new jobs





in any transaction.

$ 64 mln

Google map location

CONTENTS



KHERSONREGION

CONTACTS

Kherson Airport


Kherson is located in Southern Ukraine, 2.7 million people live within 3 hours driving time from the airport

Current characteristics of the Airport:

- Runway: 2,500 m

- Terminal: 5,550 sq m

- Traffic 2019: 154 kpax

The Airport’s apron and taxiways have been recently reconstructed (2017-2018)

The current runway length has potential to reach main European destinations with the current aircraft mix

Major investment in runway and terminal is still required in the short term period

Concession of the Kherson airport


PARTNERSHIP


Public-private


Services to over 6 million people of Kherson region and parts of

Zaporizhzhia, Dnipropetrovsk, Mykolaiv, Kirovohrad regions

PROJECT STATUS

Pre-feasibility study available




in any transaction.

$ 80-90 mln

Google map location

CONTENTS



RIVNEREGION

CONTACTS

Rivne Airport


Rivne airport has a favorable location on the key routes from Kyiv and Eastern Ukraine to the EU

Current characteristics of the Airport: - Runway: 2,626 x 42 m - Terminal: 3,610 sq m - Traffic 2019: 11 kpax - Traffic CAGR: 20% (2010 to 2019)

The current runway length has potential to reach main European destinations

Runway lighting system is outdated and should be replaced

Terminal capacity is estimated at 451 thousand passengers per year and 125 passengers per peak hour (PHPs), so it will not be a constraint

Concession of the Rivne airport


PARTNERSHIP


Public-private


Services to people in Rivne, Volyn regions, parts of Khmelnytskyi,

Ternopil, Zhytomyr regions





in any transaction.

$ 105 mln

Google map location

CONTENTS



VINNYTSIAREGION

CONTACTS

Vinnytsia Airport


Vinnytsia airport has a favorable location near big rail hub and European routes crossroad (E40, E50 etc.)Current characteristics of the Airport:- Runway: 2 500 x 42 m- Terminal: 9 000 m2- Traffic CAGR `16-`18: 40%Airport has experience to serve A 320/B 737 with restricted movements up to 14 per weekTerminal capacity is estimated at 300 thousand passengers per year and 200 passengers per peak hour (PHPs) constrained to serve only 1A 320/B 737 aircraft per hourTraffic development driven by low cost scheduled service and charters program

Reconstruction of the Vinnytsia airport


PARTNERSHIP


Public-private


Services to people in Vinnytsia and nearby regions

PROJECT STATUSPre-Feasibility study in progress




in any transaction.

€ 80 mln

infrastructure - mfa.gov.ua

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