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.
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.
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.
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.
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.
Ukraine’s State Property Fund (SPF) has called first six tenders to hire a privatization adviser to prepare the sale of six out of 22 enterprises approved by the Ukrainian government for privatization this year. In particular, tenders were called to hire advisers to sell 99.5667% of PJSC Odesa Port-Side Chemical Plant (OPZ) in Odesa region and 100% of Kyiv-based PJSC United Mining and Chemical Company (UMCC), the SPF said in announcements in the Vidomosti Pryvatyzatsii privatization bulletin on Monday.
Other four tenders will be called for advisers to sell 70.7016% of PrJSC Indar and 100% of PrJSC President Hotel (both are based in Kyiv), and two wholly state-owned enterprises: Krasnolymanska Coal Mining Company in the town of Rodynske, Donetsk region, and Kharkiv-based Electrotyazhmash Plant (ETM).
The deadline for Indar, President Hotel and OPZ is July 20 inclusively. The first stages of the tenders are scheduled for July 26, and the second stages for July 30.
Applicants for UMCC, Krasnolymanska and ETM are to send their bids before July 23. The tenders will be held in two phases: on July 27 and July 31.
In all cases, the fixed sum of an adviser’s fee is set at no more than 0.5% of an enterprise’s state-owned assets. In case of the sale of an asset, the size of the variable part is up to 2% of the value of the sold asset, it said.
As was reported, Ukraine’s Cabinet late in May 2018 published a list of large-sized enterprises subject to privatization this year. It includes 23 enterprises: five regional power distribution companies, Centrenergo, Turboatom, Zaporizhia Titanium and Magnesium Combine (ZTMC), and Sumykhimprom. Only an adviser on Centrenergo has been selected as of now. It is Ernst&Young, which on June 19 submitted its status report.
