Business news from Ukraine

Business news from Ukraine

UKRAINIAN SEA PORTS AUTHORITY TO START TENDERS TO TRANSFER OLVIA STEVEDORE, KHERSON SEAPORT TO CONCESSION

The Ukrainian Sea Ports Authority plans to announce tenders to transfer Olvia stevedoring company and Kherson maritime merchandise port in concession in May 2019, Ukrainian Sea Ports Authority Head Raivis Veckagans said at a briefing at the Infrastructure Ministry of Ukraine on Thursday.
“An important process in 2019 will be our concession projects. We plan to set up a tender commission for project evaluation in February. In March, we plan that the tender documents and criteria for evaluating potential bidders will be approved, and in May we plan to announce the tender,” he said.
Veckagans expects that by autumn, the Ukrainian Sea Ports Authority will sign the first concession agreements with public stevedoring companies.
“Also this year we plan to complete work on the feasibility studies for the following concession projects: the railway ferry complex at Chornomorsk and the public stevedoring company at the Yuzhny seaport.
As reported, the Infrastructure Ministry of Ukraine was expecting to conduct tender procedures for the transfer of Olvia stevedoring company and Kherson maritime merchandise port in concession in March-April and sign contracts with the winners of the tenders in May-June 2019.

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UKRAINE ANNOUNCES 12 TENDERS TO DEVELOP HYDROCARBON FIELDS

Ukraine has announced 12 tenders for signing production sharing agreements (PSA) for the development of hydrocarbon deposits. The relevant resolutions of the Cabinet of Ministers dated December 18, 2018 were published in the Uriadovy Kurier newspaper on January 5, 2019.
Some 12 fields were put up for auctions, including Hrunivsky, Varvynsky, Rusanivsky, Okhtyrsky, Buzivsky, Zenkivsky, Ivanivsky, Ichniansky, Balakleisky, Sofiyevsky, Berestiansky, and Uhnivsky.
The fields are located in Ivano-Frankivsk, Lviv, Poltava, Chernihiv, Sumy, and Kharkiv regions.
The term of the PSA is 50 years. Applications for participation in the tenders are accepted within three months from the date of publication of the announcement. It is assumed that the state’s share in profitable products should be at least 11% of its total volume, the maximum investor’s share – 70% of total production (until full reimbursement of investor expenses).
At the first stage of exploration (within five years) the minimum investment in Varvynsky, Ichniansky, Sofiyevsky areas amounts to UAH 1 billion, Hrunivsky not less than UAH 850 million, Rusanivsky, Ivanivsky, Balakleisky not less than UAH 800 million, Okhtyrsky, Buzivsky, Uhnivsky not less than UAH 600 million, Zenkivsky not less than UAH 500 million, and Berestiansky some UAH 450 million.
Tenders on the first ten sites were initiated by the U.S.-Ukraine Business Council (USUBC) and the investment company SigmaBleyzer, and the rest of deposits by Ukraine’s Navigator Komplekt LLC.

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LITHUANIA READY TO COOPERATE WITH UKRAINE IN TENDERS, ROLLING STOCK PRODUCTION

Lithuanian Railways has offered JSC Ukrzaliznytsia cooperation in a number of areas, including the development of international freight traffic, the Ukrainian League of Industrialists and Entrepreneurs (ULIE) reported on its website. The company wants to continue developing cooperation with Ukrzaliznytsia.
“Lithuanians offer Ukrzaliznytsia to cooperate in many areas. In particular, the matter concerns joint participation in European and international tenders, production and renovation of rolling stock, and an efficient use of the railway fleet for Ukraine,” representative of Lithuanian Railways Paulius Grubinskas said after the fourth Ukrainian-Lithuanian Economic Forum held in Kyiv on December 7.
Thus, according to the Lithuanian side, freight traffic between Ukraine and Lithuania increased by 10% in 2018, while the Viking container train increased traffic by 40%.
“There is a big goal – Ukraine and Lithuania want to combine the Black Sea and the Baltic Sea, while the Viking train can contribute. By the way, Scandinavian countries also express their interest in this,” the expert said.

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BOMBARDIER FROM CANADA PLANS TO TAKE PART IN UKRAINIAN TENDERS

Canada’s Bombardier Transportation, the manufacturer of railway solutions, is ready to take part in a tender to supply electric locomotives for JSC Ukrzaliznytsia, Ukrainian Infrastructure Minister Volodymyr Omelyan has written on his Facebook page. “Everyone is waiting for the tender of Ukrzaliznytsia, in which not only Alstom, but also Bombardier and Chinese companies are ready to take part. Given the complete deterioration of Ukrainian locomotives, there is no place to delay further,” he said, summing up his visit to France last week.
Earlier in Ukrzaliznytsia said that Alstom and CRRC, Siemens and Skoda showed their interest in this project.
As reported, in November, the International locomotive building conglomerate Skoda Transportation opened the first official representative office in Ukraine in Dnipro.
GE Transportation and Kriukov Car Building Works in early June 2018 signed an agreement to localize the production of 30 TE33A Evolution series locomotives. Ukrzaliznytsia received the first diesel locomotives at the end of 2018.
The framework agreement between Ukrzaliznytsia and GE, signed early 2018, provides for 15 year partnership in upgrade and modernization of traction fleet, the first stage of which is supply of 30 new diesel TE33AC locomotives to Ukrzaliznytsia in leasing with 10% localization level.

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STATE PROPERTY FUND NAMES TERMS OF TENDERS TO SELECT INVESTMENT ADVISORS FOR PRIVATIZATION

The State Property Fund of Ukraine (SPF) has made announcements on holding tenders to select investment advisors to prepare PJSC Azovmash, OJSC Oriana, PJSC Sumykhimprom, NJSC Ukragroleasing, Kherson combined heat and power plant (CHPP), Dniprovska CHPP, PJSC Kryvy Rih CHPP and Severodonetsk CHPP for privatization.
The announcements were published in the Vidomosti Pryvatyzatsii newspaper.
The tenders will be held in two stages. The first stage is to complete on September 7.
The second stage of the tenders to select investment advisors for Azovmash (50% shares), Kherson combined heat and power plant (99.8328% of the share capital), Dniprovska CHPP (99.9277%), Kryvy Rih CHPP and Severodonetsk CHPP will take place on September 17.
The second stage of the tender to select investment advisors for Sumykhimprom (99.9952%), Oriana (99.9988%) and Ukragroleasing (100%) will take place on September 18, 2018.

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UKRTRANSGAZ ANNOUNCES TENDERS TO BUY GAS

Public joint-stock company Ukrtransgaz on June 22 and June 23 announced 12 tenders to buy gas for technological needs and balancing in the amount of 2.437 billion cubic meters with the expected cost of UAH 21.202 billion (VAT not included).
The bids can be submitted before July 23 and July 24 (depending on the lot). The auctions will take place on August 28 and August 29.
The final price of gas to be paid by Ukrtransgaz to the winners of the tenders will be determined, taking into account quotations at NetConnect Germany (NCG) in the period when gas is delivered.

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