Josip Vinsky skeptical about incumbent VR potential

July21200810:50

“I am worried by the inactivity of Verkhovna Rada. The transport ministry cannot go ahead with our plans to modernize airports, sea ports, railways without VR passing the appropriate legislation. Realizing the urgency of such work, the ministry has drawn out a number of bills that are now gathering dust in VR. For instance, there are 15 investment projects on my desk worth $50 billion that can be implemented. Consequently, we can get a sea port, an airport, a railway and similar infrastructure by using the money of foreign investors. Hence, the legislature must be unblocked. But my estimates of the incumbent VR efficiency are very skeptical,” J. Vinsky said.

Due to VR paralysis, the all-important law “On Concession” cannot be endorsed, J. Vinsky says. Meanwhile, the law could allow to begin the construction of the Krakovets (Polish border)-Kyiv highway this year. The present law “On Concession” has been written to deliberately exclude concession mechanisms in road construction. “We have submitted to VR a new law which takes the interests of concession-holders into account. Given VR support (and the bill is among the 15 fast-track bills), foreign companies could enter the Ukrainian market and build roads under concession contracts. Unfortunately, the present law offers little ground to foreign investors to have trust in it,” the official summed up. Regarding the government’s role in the construction of the Krakovets-Lviv highway, Josip Vinsky said the cabinet had taken a crucial decision to attract 24 billion hryvnia in credits for the next 3 years. In addition, the cabinet has earmarked 10 billion hryvnia this year and for the next 2 years which will give the total of 30 billion hryvnia. That means that, in total, Ukravtodor (Ukraine’s state-run road-building company) will have about $10 billlion. This will allow to implement a range of projects. However, we would prefer if the projects were implemented in full and on a turn-key principle. Since the Krakovets-Lviv highway is linked to Euro-2012, if none of the concession contracts are signed soon, we will look for alternative mechanisms to build the road,” Vinsky noted.