IFC, Ukraine’s Infrastructure Ministry Partner to Launch PPPs in Transport, Encourage New Investment

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. 

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. 

“Ukraine’s infrastructure needs are enormous,” said Volodymyr Omelyan, Infrastructure Minister. “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.” 

The partnership marks IFC’s first advisory-related PPP project in Ukraine. Under the terms of the agreement, IFC will help the infrastructure ministry enhance its ability to develop and manage PPPs through specialized training programs. IFC’s PPP experts will also support the ministry as it develops a broader legislative framework for PPPs and locally-tailored guidelines for preparing PPP projects. 

“Increased private sector participation in the infrastructure sector is crucial for economic growth and job creation in Ukraine,” said Jason Pellmar, IFC’s regional head for Ukraine, Belarus, and Moldova. “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. 

About IFC 
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY17, we delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit www.ifc.org