Infrastructure minister elaborates on special fund for development of airports

Ukrainian Infrastructure Minister Vladyslav Kryklii says the creation of a special state fund for the development of airports is necessary to upgrade Ukraine's airport infrastructure and form clear mechanisms that ensure state support for public-private partnership (PPP) projects.

He made the comment at a working meeting with representatives of the European Bank for Reconstruction and Development (EBRD) and Ernst & Young consultants, the ministry's press service said on its website on April 29.

Read alsoRyanair to open base in Riga, launch new routes to Ukraine

"The creation of a special state airport fund will not only contribute to the upgrading of airport infrastructure, but also to the formation of clear mechanisms for providing state support for PPP projects," the press service quoted the minister as saying.

Aviation fuel excise is expected to be a main source of income for the airports' fund.

According to preliminary estimates, this will allow the reconstruction of two regional airports annually.

In turn, Ernst & Young consultants presented approaches to the development of Ukraine's airport infrastructure, which will be the basis for the airport fund's concept.

Background

• In February 2021, Kryklii said that the establishment of special funds in Ukraine for the development of airports and railways would ensure stable financing of the sectors, as well as boost the efficiency of the relevant infrastructure.
• In October 2020, Kryklii announced the ministry's plans to establish airport and railway special funds to finance public-private partnership projects, including co-financing of airport and railway station concession projects.
• The European Bank for Reconstruction and Development backed the minister's initiative.