A Worthwhile Undertaking
Ukraine’s obsolete and non-competitive infrastructure, routinely patched up since Soviet times, is a key constraint on increasing cross-border trade and capitalizing on Ukraine’s geographical location. Modernizing our transport infrastructure is an extremely expensive undertaking. Different estimates result in substantial figures and start from USD 60 billion. But any further status quo may lead to a steady reduction in export potential and transit capabilities.Loans from foreign banks, international financial institutions and other donors are not sufficient to cover these vital needs. However, over the past few years potential private investment options have begun to convert into practice. The landmark projects of 2020 included the signing of concession agreements in relation to Kherson and Olvia seaports. Concessions in other ports and the launch of privatization of stevedoring companies are also in the pipeline. According to our cover story speakers, Andrii Pidhainyi and Marina Sharapa, partners of AGRECA Law Firm, pre-feasibility studies for private sector participation have already been finished in the road, railway, and air transport spheres. It means we can expect real PPP projects in the coming years. The priority for the government is to provide a secure mechanism for cooperation between public and private players.