This article was originally published in fDi Magazine and is reproduced with permission.
Ukraine’s infrastructure has huge potential and the increase of agricultural exports is one of the key catalysts of infrastructural development. It seems that the time is right for investment.
Ukraine has 13 seaports on the Black Sea and the Sea of Azov and port infrastructure is a strategic area for the Ukrainian economy. Legal regulation in this area allows activities of private port operators, seaport concessions, construction of private port terminals and even ports.
Ukrainian legislation permits the construction of toll highways if alternative free routes are available, and roads in common use may be subject to concession. These circumstances make investment in motorways potentially attractive.
Ukraine occupies sixth position in Europe and twelfth in the world in terms of railroad length. Currently, 82 percent of Ukraine’s trade turnover is transported by rail. Stable growth of exports from Ukraine will increase the load on the existing railroad system, which will necessitate further development of infrastructure.
Legal aspects and initiatives
Several regulatory acts focused on PPP have been developed and adopted. The BOT model is now allowed and lease of state property remains a popular option for investing in Ukrainian infrastructure. Further reforms in the nearest future will protect the interests of private investors, establish clear procedures and expand opportunities.