Business news from Ukraine


29 October , 2019  

Infrastructure Ministry of Ukraine is mulling the possibility of concession of the Lviv airport, Infrastructure Minister Vladyslav Krykliy said on the sidelines of the RE:think. Invest in Ukraine forum opened in Mariupol on Tuesday.
“Among the state-run airports, we have only two – Boryspil and Lviv. It is more rational to talk first about the Lviv concession,” the minister said.
He said that the Boryspil airport already has its own development strategy, which it is now successfully implementing on its own, and this also needs to be taken into account.
“Concession has a very simple formula. If a project is troubled or unprofitable, it can be transferred to a concessionaire under very favorable conditions for obligations to increase traffic, and other things. If this is a profitable activity, as in the case of the Boryspil [airport], the issue is ambiguous, because the Boryspil [airport] grows on average in passenger traffic by 15-20% annually… If an investor is ready to take on obligations to increase passenger traffic two or three times faster, then it is already possible to speak about it. But I am not sure that someone will undertake such obligations,” Krykliy said.
As reported, in September, the Infrastructure Ministry of Ukraine announced that it was preparing pilot projects for the transfer of regional airports to concession.

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