REFORMS IN ACTION 28/07/2016 DONOR COORDINATION MEETING MINISTRY OF INFRASTRUCTURE OF UKRAINE

Transcription

1 REFORMS IN ACTION 28/07/2016

2 AGENDA PROGRESS UPDATE EBRD TENDER AWARD ACTION PLAN UKRZALIZNITCYA ACTION PLAN UKRPOSHTA NEW PROJECTS OF THE MINISTRY TECHNICAL ASSISTANCE PROJECTS DISCUSSION

3 PUBLIC ADMINISTRATION REFORM ACTIONS: Established Technical Office to support reforms Reform Support Team Functional Review will be completed in September PLANNED NEXT STEPS: Functional review of the Ministry agencies Restructuring of the Ministry development of action plan Develop compensation system for the Ministry Civil Servants

4 NATIONAL TRANSPORT STRATEGY OF UKRAINE (NTSU) PRIORITIES: Priority 1: Drive Reform in Transport Sector Priority 2: Ensure Quality and Efficiency in Operating Transport Networks Priority 3: Support Sustainable Financing for Transport Sector Priority 4: Improving Transport Safety Priority 5: Better Urban Mobility and Sustainable Regional Integration NTSU will include combining the design of an ambitious transport policy (efficient, safe, secure, environment friendly, multimodal) with the integration of EU standards)

5 IMPROVING TRANSPARENCY: ANTICORRUPTION DEPARTMENT ACTIONS: Established Anticorruption Department Close coordination with NABU and Prosecutor s Office Ongoing procurement investigations UZ, USPA, Boryspil Airport, Ukravtodor More than 10 criminal cases opened PLANNED NEXT STEPS: Investigation on Black Sea Shipping Company Training of Anticorruption Department staff

6 NTSU: ROAD SECTOR REFORM ACTIONS: The law on the creation of the Road Fund submitted to Rada ( ) Management reorganization Decentralization of Ukravtodor Public Communication Project (interactive map) PLANNED NEXT STEPS: National Strategy of Road Safety Permits for interregional traffic

7 NTSU MARITIME SECTOR REFORM ACTIONS: Establishment of Maritime Administration the law will be submitted to the Parliament today Reduction of tariffs MOU with P&O Maritime Port of Dubai signed Amendment of Concession Law with EBRD support by December PLANNED NEXT STEPS: Development of the reform program for maritime sector Increase of port intermodality Concession of ports Oktyabsk and Kherson

8 EBRD TENDER AWARD

9 USACE EVALUATION River locks in danger of mission failure

10 NTSU INLAND WATERWAYS REFORM US Army Corps of Engineers performed survey of 5 of 6 locks Ministry allocating EU budget support funds towards replacing key lock components USD 4 mln PLANNED: Establish plan for reconstruction of locks to avoid mission failure Develop comprehensive strategy for inland waterways sector Establish Waterway User Board to formally engage stakeholders Create dedicated waterway fund

11 NTSU AVIATION REFORM ACTIONS: Develop comprehensive marketing strategy for the airports Attract new airlines and air service to Ukraine PLANNED NEXT STEPS: Development airline incentive program Supporting Odessa airport runway modernization Expending Odessa airport capacity including cargo Signing Open Sky Agreement with EU Develop working arrangement with EC for certification of aeronautical products

12 NTSU RAILWAY REFORM ACTIONS: Signed MOU with locomotive producers Bombardier and General Electric concerning the localization of production Testing the new GE locomotive and unit trains Starting IT audit and development of effective unified IT system PLANNED NEXT STEPS: Creation of Cargo Division to increase efficiency Plan for rolling stock procurement Establish Railway Administration Revision of procurement and tendering procedure Financial stability: cost reduction and debt restructuring

13 ACTION PLAN UKRZALIZNYTSYA

14 ACTION PLAN UKRPOSHTA

15 NEW PROJECTS

16 ELIMINATION OF INFRASTRUCTURE BOTTLENECKS Developing the list of project that will have highest economic impact: Reconstruction segments of roads in a frame of TEN-T corridors Increasing intermodality of ports 12 km railway line Bereseno-Bessarabska Road connection with Hungary Construction of intersections to improve the road safety Financing: NIF and CEF grants, IFIs loan Letter support from EU member states

17 ODESSA AIRPORT RUNWAY Runway at Odessa airport is not in compliance with ICAO requirements Options: Build new runway 24 to 30 months Overlay of existing runway 6 months Financing options: IFIs loan backed by airline revenue Bank loan backed by airline revenue Next steps: Consultations with airlines Consultation with IFIs

18 BORYSPIL AIRPORT CARGO TERMINAL Concession of the current cargo terminal in Boryspil airport: Description: Cargo Business Center Cargo platform Client services Custom control Direct connection to E40 Total area: sq.m.; 9 warehouses Carrying capacity:2686 pallets; tons (per day) Cargo loading: 980 sq. m. Cargo distribution:1980 sq. m. open-space Investments: Improvement of logistic services and infrastructure Increase of cargo terminal capacity Potential: The cargo growth projection is 4% per year Implementation of mail services, belly-cargo, food, etc.

19 SILK ROAD TRANSPORT CORRIDOR Concession or rental of Illichivsk port ferries: Transportation services on the following routes: Ilyichevsk Varna, Ilyichevsk - Derince, Ilyichevsk - Poti / Batumi Ferry "Heroes of Plevna Cargo Business Center Cargo platform lient services Custom control Capacity:108 railway wagons (l = 14,73 m) with a total weight of tons Ferry "Heroes of Shipka Capacity:108 railway wagons (l = 14,73 m) with a total weight of tons Investments: Direct connection to E40 Repair and maintenance of the ferries Development of multimodal transportation services

20 TECHNICAL ASSISTANCE PROJECTS

21 TECHNICAL OFFICE REFORM SUPPORT TEAM The Technical Office Reform Support Team (RST) is the first step in MoI Public Administration reform RST will consist of 21 employees First 7 position is published on the MoI and EU delegation web-pages The RST will concentrate on NTSU that will contemplate long terms objectives RST will facilitate reform process in the Ministry and its agencies, SOEs

22 GENERAL PROJECT DESCRIPTION DONOR / IFIs STATUS National Transport Strategy of Ukraine Revision of existing National Transport Strategy of Ukraine, development of Transport policies EU major, EBRD, World Bank, US Treasury, USA Development of TOR Functional Review of the Ministry Analysis of the functions of the Ministry and all related agencies, development of the recommendations in order to improve effectiveness EU major, World Bank, EBRD Ongoing Infrastructure management cycle Identify all legal, administrative, organizational impediment to efficient management of the entire transport infrastructure management chain (from project decision until maintenance) EU Tender about to be launched Transport Master Plan Allowing in particular to identify priority projects based on traffic flow patterns and other objective criteria. EU Tender in preparation Transport Logistic Study Improvement of logistic system in Ukraine, identification of bottlenecks, railway, ports, inland waterways and roads sectors World Bank, EU Choosing consultant

23 GENERAL PROJECT DESCRIPTION DONOR / IFIs STATUS Amendment of the Law of Concession The core objective is providing the technical assistance to the Ministry for the development of a modern PPP/concessions policy and legal framework in Ukraine EBRD Ongoing Ukrtransbezpeka (Transport security) Complete elimination of the old Ukrtransinspection and Ukrmorrichinspection services; develop a mechanism for transfer of authorities of Ukrtransinspection and Ukrmorrichinspection; develop new processes to ensure implementation of all tasks entrusted with the Service according to Provisions. Arrange competitive selection of inspectors EU Planning Anticorruption department of the Ministry Audit functions, procedures and staff. Propose new structure and procedures. Set up operations. Get new people, do background checks for current and perspective Negotiating

24 RAILWAYS PROJECT DESCRIPTION DONOR/IFIs STATUS Corporate governance Replicating the success of NAK Naftogaz Corporate Governance, EBRD could assist UZ with its corporatization. The Board of Directors and a Supervisory Board with a majority of independent members need to be established and fully capable of performing their duties. This project requires a close cooperation with the Government and the State Property Fund EBRD Development of TOR Development of ERP system UZ has no Corporate Accounting IT system linked to the six regional railways. The project includes the conduction of IT audit and integration all existing systems in one effective US Treasury Ongoing Logistic hubs study The study of the potential of the creation of logistic hubs and implementation of unit trains approach in order to increase efficiency of railways World Bank Choosing consultant US Treasury Technical Assistance Assistance in development of action plan, improvement of procurement systems, increasing efficiency testing the unit trains approach, assistance with debt restructuring and hedging of currency risk US Treasury Ongoing

25 MARITIME PROJECT DESCRIPTION Pre-feasibility study for Oktyabrsk seaport The Ministry of Infrastructure is interested in developing concessions and attracting investments into the Ukrainian port sector infrastructure. Port Oktyabrsk has been identified as a perfect match to be a show case of proper concession project EBRD Secure funding Pre-feasibility study in Kherson (seaport and river port) The Ministry of Infrastructure is interested in developing concessions and attracting investments into the Ukrainian port sector infrastructure. Port Kherson has been identified as a match for the concession project World Bank Development of TOR US Treasury Technical Assistance Support the development of port sector, facilitation of the private investments flow in the State Owned Stevedoring Companies US Treasury Ongoing Establishment of Maritime Administration The Law "On Sea Ports" adopted in 2013 requires creation of a separate executive body implementing the policy in the maritime and river transport. EU Was supported by EU NTSU project Preparation of the IMO Audit in 2018 Preparation to IMO Audit EU Maritime Safety Agency Planning DONOR/IFIs STATUS

26 INLAND WATERWAYS PROJECT DESCRIPTION DONOR/IFIs STATUS Technical Assessment of 5 locks Identification of the technical conditions of the water locks on the Dnieper river USACE Final report finished Feasibility study of the reconstruction of the locks Identification of the funding needs for the reconstruction of the locks and navigation improvement. Studying the economic benefits from the opening of the river transportation in Ukraine. Dutch Embassy Development of TOR US Treasury Technical Assistance Support the reform of Inland Waterway Sector, development of the reform plan, assistance in attraction of financing in the locks reconstruction and dredging US Treasury Ongoing Lowering the Dnieper river Identifying of potential dredging needs, development of the structure to attract private investments in the inland waterways sector World Bank Development of TOR Privatization of Ukrainian Danube Shipping Company UDSC is one of the biggest shipping companies on Danube engaged in both cargo and passenger transportation. The company needs to be prepared for a transaction to maximize value. US Treasury Potentially USAID, EBRD US Treasury just started Negotiation with USAID, EBRD

27 ROADS AND ROAD TRANSPORT PROJECT DESCRIPTION DONOR/IFIs STATUS Strategy prioritization of transport corridors Identifying major transport corridors national importance. Development of the priorities for the roads reconstruction program World Bank, EU TOR approval Road safety design project To identify and design road safety projects EIB Ongoing Road safety design audit To identify the road safety problems EIB Ongoing Automobile transport policies - issuing certification for interregional traffic In order to regulate automotive transportation, improve safety and reduce corruption in the market of inter-region transportation services the Ministry requires new regulations to be drafted and a plan for their implementation Negotiating

28 AVIATION PROJECT Twinning DESCRIPTION Airports development US Treasury Technical Development of the marketing strategy for the L'viv and Boryspil airports in order to attract new airlines Assistance Checking the opportunity of the construction of international airport in Odessa DONOR/IFIs STATUS EU Ongoing US Treasury Ongoing

29 NEXT STEPS Organization of the Strategic Task Force to discuss the vision and priorities for Transport Policies, NTSU Meeting with investment companies/potential investors regarding new projects of the Ministry Donor coordination meeting: Inland Waterways

30 NEXT STEPS LET S START THE DISCUSSION