17:19 20.10.2020

Infrastructure ministry plans to create airport and railway special funds to finance PPP projects

2 min read
Infrastructure ministry plans to create airport and railway special funds to finance PPP projects

The Ministry of Infrastructure of Ukraine plans to create airport and railway special funds to finance public private partnership (PPP) projects, including co-financing of concession projects for airports and railway stations.

As Infrastructure Minister Vladyslav Krykliy said during the panel discussion entitled "Privatization and Concession in Transport in 2020-2021: Next Steps" held in Kyiv on Tuesday, a team of specialists from the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD) completed a preliminary analysis of the possibility of transferring some airports to concession.

"It is planned that they will be able to get access to public co-financing through a special airport fund. The source of the fund will be primarily the excise tax on aviation fuel, which will allow the restoration of two regional airports every year," Krykliy said.

According to the minister, before the creation of the fund, Ukraine is already implementing the PPP concept, when the state provides funding for the restoration of the runway, and a private investor invests in the renewal of the terminal. According to this model, the airport in Dnipro is being built and the airport in Zakarpattia region is planned.

In addition, Krykliy said that now the possibility of opening a railway fund is being studied, which can become a source of payments for operational readiness for the implementation of the concession of stations and other PPP projects, and can also speed up the process of updating the passenger rolling stock of Ukrzaliznytsia.

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