Posted on January 24, 2017
The Ukrainian Sea Port Authority took liabilities to carry out dredging works in the project to build a grain terminal by Cargill and the authority will implement them in full amount and in accordance with the project terms.
M.V. Cargo LLC said on its Facebook page that Head of the Ukrainian Sea Port Authority Raivis Veckagans gave the information on January 22 during his visit to the construction site of the grain terminal.
He said that the successful implementation of the Ukrainian-U.S. project to build the grain terminal with a capacity of 5 million tonnes would become not only the important step in developing infrastructure of the Yuzhny seaport and the port sector in general, but it would also give a signal to large international investors that Ukraine is ready to cooperate and implement similar projects.
Representatives of M.V. Cargo said that they support the initiative of the authority’s head to have as transparent dialog with representatives of large investors as possible.
“The provision of financing from the European Bank for Reconstruction and Development (EBRD) and International Finance Corporation (IFC) and the launch of the project before the 2018 grain season depends on transparency of conditions and observation of terms of the tender for dredging works near berth No.25 at Yuzhny port,” reads the report.
The company said that the tender is to be held in February. Delay of the tender would result in freezing of financing, suspension of construction and lost profit of the Ukrainian Sea Port Authority and the budget due to port dues the authority could receive and the absence of tax payments to the budgets of all levels from the operation of the terminal.
U.S. Cargill, the Sea Port Authority of Ukraine and M.V. Cargo in August 2015 signed a trilateral memorandum of intent to implement an investment project at the Yuzhny seaport.
Cargill signed an investment agreement with M.V. Cargo LLC operating at the port. The U.S. company decided to invest $100 million in construction of the grain terminal.
Source: Interface-Ukraine
