15:13 05.12.2013

Unique deep water port will be built in Crimea using Chinese investors' funds

2 min read

A deep water port 25 meters deep will be built in Crimea using funds from Chinese investors, Director General of Kyivhydroinvest, a designer of the project, Oleksiy Maziuk, has said.

An Interfax-Ukraine correspondent has reported that the relevant memorandum was signed by Kyivhydroinvest and China's BICIM as a part of the Ukrainian-Chinese business forum in Beijing on Thursday.

"This is a unique facility, which will have the function of redistributing freight flows from the east to Europe," Maziuk told reporters.

He said that Ukraine is located on the Eurasian transport corridor, historically named the Silk Road.

"Today, we're participating in the restoration of the route with elements of marine logistics," he added.

"The project will be realized in a public private partnership regime, which is clearly regulated by our laws. Finally, the state receive ownership of half of the facilities that will be built," Maziuk said.

He said that this is a first precedent of realizing a large-scale infrastructure project in Ukraine using money of investors and not secured by the state.

He said that the project foresees the building of several terminals and grain elevators with a capacity of 20 million tonnes. The port will be built in Saky district, not far from Frunze settlement. Maziuk said that the port's water area will be dug using unique solutions and it will allow the servicing of large ocean-going ships with deep drafts.

He said that the decision to start the realization of the project was made a month ago, and work will be started next year. The approximate cost of the construction of the first stage of the project is $3 billion.

"The first phase will be realized in some four or five years," he said.

"Taking into account the fact that the projected capacity of the port is from 140 million tonnes a year, one could calculate that the port and other duties alone will bring in at least $1.5 billion a year to the state," he said.

He added that goods from Asia to Europe and back would go via the port.

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