Illichivsk Sea Commercial Port Infrastructure Dev. Project

complete

The proposed project will enable the Port to carry out its modernisation programme, including berth reconstruction, procurement of the cargo handling equipment and dredging works in order to increase operational reliability and efficiency of the Port’s services. The Project also includes Port’s corporate development programme with the aim to transform it into a more commercial entity through introducing business planning, IFRS audit and strengthening the Port’s in-house capacity in strategic development and management of its relationships with the private operators. The Bank will promote commercialisation of one of the major ports in the Country and establish a platform for continuing the policy dialogue with the Government on comprehensive reform of the sector, which could eventually enable Ukrainian ports to borrow without sovereign guarantees in the future. The Port of Illichevsk is one of the largest ports in Ukraine located on the coast of Sukhoy Liman, 12 miles southwest from Odessa. The Port is divided into three cargo terminal complexes. The main products handled include: metal products, grain, fertilizers, cement, coke, coal, and containers. EURO 26 million loan EURO 38.6 million The project has been screened B/1. The project presents significant opportunities to improve environmental and worker health and safety conditions at the Illichevsk Port and reduce its impacts on the environment of the Black Sea. Environmental due diligence, which was carried out for the Port facilities proposed an Environmental Action Plan to bring the facilities into compliance with applicable national and EU environmental standards. The implementation of EAP and environmental reporting will be covenanted in the Loan Agreement. Technical co-operation assistance for Bank’s due diligence: market, technical and environmental due-diligence financed under the EU TACIS-funded Transport Team framework contract (funds totalled around EUR 100,000). Technical co-operation assistance for Corporate Development: introduction of business planning and development of capital investment policy, management of the Port’s relationships with the private operators and introduction of IFRS (EUR 500,000). To be financed under EU IPF 2002.