Omelyan says IFC's support will help ensure Ukraine is implementing the best possible solutions / Photo from UNIAN
IFC, a member of the World Bank Group, and Ukraine's Ministry of Infrastructure signed a Memorandum of Understanding confirming their intent to launch public-private partnerships (PPPs) and mobilize much-needed private investment into the country's transportation sector, according to an IFC statement.
IFC's advisory team will help structure PPP projects at two Ukrainian ports – Olvia, near Mykolaiv, and Kherson Sea Trade Port.
IFC will also explore the potential of structuring a PPP for a railway-ferry terminal complex at Chornomorsk Port. The projects are critical for Ukraine, a leading grain exporter, where dated infrastructure often impedes the efficient movement of goods.
Read alsoIFC supports Ukraine’s SMEs with $15 mln investment in new private equity fund
"Ukraine's infrastructure needs are enormous. We need to crowd-in private investment to modernize the country's infrastructure and upgrade it. IFC's support and technical expertise will help ensure we are implementing the best possible solutions efficiently and transparently," Infrastructure Minister Volodymyr Omelyan said.
"Increased private sector participation in the infrastructure sector is crucial for economic growth and job creation in Ukraine," Jason Pellmar, IFC's regional head for Ukraine, Belarus, and Moldova, said in turn. "Modernizing infrastructure through PPPs, especially in ports on the Black Sea, will help boost exports and drive economic development in the country."
PPPs are helping governments worldwide draw on technical innovation and the management expertise of the private sector while enabling increased investment in vital infrastructure and driving economic growth.
Through financing and advisory services, IFC has been helping national and municipal governments attract qualified private sector partners for over 30 years. Over the last decade, IFC's PPP Transaction Advisory team has generated nearly $22 billion of private investment in infrastructure, and supported governments in improving essential services such as power, transportation, healthcare, water, and sanitation for 98 million people.