Olvia Sea Port Concession

Project Details

Client

Ministry of Infrastructure of Ukraine | Sponsored by IFC & EBRD

Type

Concession

Services

Project Management, Strategic Consulting

Date

2016 – 2021

Website

Visit Page

The State Enterprise “Stevedoring Company Olvia” is one of the key seaports of Ukraine located on the left bank of the Southern Bug River, near the city of Mykolaiv.

It serves as a major export gateway for grain, construction materials, and bulk cargo and is connected to the national road and rail network.

The port occupies an area of approximately 140 hectares and includes 7 operational berths with a total quay length exceeding 1.5 km, covered and open storage areas, and inland infrastructure facilities. Before the concession, it handled up to 3 million tons of cargo annually, mainly grain, clinker, coal, and fertilizers.

The main objective of the concession was to modernise and expand the port’s infrastructure, increase handling capacity, and attract private capital for rehabilitation of outdated equipment and construction of new terminals.

The project also included the development of new grain terminals and improvement of multi-purpose operations.

Impressions

Challenge

Pilot PPP transaction in Ukraine

Before the concession, the Olvia Port operated as a state-owned enterprise with outdated infrastructure, low productivity, and limited access to investment.

Despite its strategic location and deep-water access, the port faced declining competitiveness compared to privately operated terminals in Mykolaiv and other Black Sea ports.

Public funding was insufficient to maintain or modernize port assets, and fragmented management of port land, berths, and auxiliary facilities created institutional and operational inefficiencies.

Cargo volumes were stagnating, equipment was reaching the end of its service life, and the port lacked modern grain and general cargo terminals to meet private exporters’ demand.

The Government of Ukraine, supported by the Ministry of Infrastructure and international financial institutions, identified Olvia as one of the pilot concession projects aimed at testing the new PPP and Concession Laws and attracting long-term private investment to the sector.

To implement this, the Ministry required comprehensive advisory support to prepare and conduct a transparent international tender in line with international best practice — covering technical, financial, legal, and economic dimensions of the project.

Execution

Project preparation and structuring

SPILNO Advisory supported the Ministry of Infrastructure of Ukraine as the project coordination and delivery office (PMO).

Its role was to ensure that the inputs of specialised advisors engaged by EBRD and IFC were properly aligned, integrated, and delivered within the established timeline, resulting in a complete and compliant decision-making and tender package.

Key responsibilities included:

Project management and coordination — development of workplans and schedules, facilitation of coordination meetings between the Ministry, consultants (legal, technical, and economic), and international partners (IFIs);
Integration of deliverables — consolidation of legal, technical, and economic inputs into unified project documents, including summaries of the feasibility study and tender materials;
Transaction process support — organization of the data room, coordination of investor Q&A, recording of communications, and preparation of internal briefs and reports for government approvals;
Tender and negotiation phase support — logistical and advisory assistance during the evaluation and negotiation process with the winning bidder, ensuring procedural compliance and alignment of commercial terms;
Risk and compliance facilitation — assisting in aligning the risk matrix and key commercial terms (together with the legal and technical advisors) and ensuring compliance with Ukrainian law and IFI policies;
Stakeholder engagement — coordination with government entities, state-owned enterprises, and key stakeholders; preparation of materials for meetings, approvals, and public communication;
Market sounding — support for consultations with potential investors and market participants (content developed jointly with the advisory consortium);
Post-signing support — assisting the Ministry with concession contract management during force majeure conditions, including coordination with the concessionaire, line agencies, and IFIs.

SPILNO ensured overall coordination, integration, and process discipline on the public side throughout project preparation and tender execution.

Results

The Olvia Port Concession became one of the first two successful PPP transactions implemented under Ukraine’s renewed PPP and Concession framework, demonstrating the country’s ability to attract long-term private investment into strategic infrastructure.

Following an open and transparent international tender, QTerminals (Qatar) was selected as the concessionaire, committing to invest over USD 120 million in the modernization and expansion of port infrastructure over the 35-year concession period.

The concession was signed in August 2020, and implementation is currently underway, marking a milestone for Ukraine’s infrastructure reform and serving as a cornerstone example of the country’s PPP success story.

Key outcomes of the project include:

Establishment of a benchmark PPP model for subsequent projects in the port, airport, and municipal sectors;
Improved investor confidence and growing interest from international port operators;
Introduction of modern governance, risk management, and reporting mechanisms for public partners;
Creation of a replicable project preparation and tender process;
Strengthening of Ukraine’s institutional capacity to structure and implement PPPs in compliance with international standards.

More Projects

Concession at the Kherson Sea Commercial Port of Ukraine