Compensating Ukrainian port investment
One of the fundamental aspects to port reform in the Ukraine is putting in place a compensation arrangement for private investors for investments made to improve port infrastructure, says Odessa based legal firm, Interlegal.
But it warns that such provision cannot work without an adequate law enforcement method.
To this end, Interlegal is working jointly on a draft procedure with the Ministry of Infrastructure in the Ukraine which will require investors to submit a business plan, consult expert opinion on the investment, and be subject to rigorous solvency checks.
Olena Losevska, attorney at law, Interlegal, said toPort Strategy: “The arrangement will guarantee that the result of any investment to port assets will remain state-owned property. It also will allow the Administration of Ports to maintain control over the investment process.”
Such an arrangement will also allow the administration to stipulate the final compensable amount due.
It is a neat solution for the new Administration of Ports, which has taken over as the body responsible for overseeing port activities in the country. The new law on sea ports in the Ukraine means that the 18 state ports can now take advantage of private investment and it also provides an important opportunity for the government to improve port infrastructure using private money.
Interlegal is taking part in formulating the compensation agreements on the part of their clients, the investors.