NIBULON will Invest more than UAH 5.5 billion in Ukraine’s Infrastructure
Nibulon, Mykolayiv, Ukraine,
Mon, May, 1, 2017
Published by U.S.-Ukraine Business Council (USUBC)
Wash, D.C., Thu, June1, 2017
A leader of agrarian market NIBULON intends to invest more than UAH 5.5 billion in the development of the infrastructure of the agrarian sector and river transportation in the next few years.
This was stated by NIBULON’s General Director, Hero of Ukraine Oleksiy Vadaturskyy.
According to him, the money will be aimed at the construction of new river transshipment terminals along the Dnipro River and the Southern Buh River, construction of the cargo fleet at NIBULON shipbuilding and repair yard in Mykolaiv, and reconstruction of the shipyard. In particular, the International Finance Corporation, a member of the World Bank Group, decided to allocate USD 90 million to NIBULON.
In particular, the transshipment terminals in Hola Prystan (Kherson region) and in Bilenke (Zaporizhzhia region) will have been put into operation by June 15, 2017. “We are sure that this will be a holiday not only for residents of these regions but also for residents of other regions, as well as for thousands of employees of 150 contracting organizations from different regions of Ukraine who have been involved in the construction of these terminals. I want to express my gratitude once again to the heads of Zaporizhzhia, Kherson and Dnipropetrovsk Regional Administrations for assistance of their teams in the process of our investment program implementation”, stressed Oleksiy Vadaturskyy.
“Implementation of NIBULON’s investment program is great assistance to the agro-industrial complex of Ukraine. Last year, thanks to our complex measures, we minimized transport costs for grain delivery, reduced the shipment distance, and contributed to an essential decrease in traffic loading on the highways of Zaporizhzhia, Kherson, Mykolaiv regions, having removed tens of thousands of trucks from the roads; unfortunately, no one repairs the roads, but everyone blames NIBULON and agricultural producers for worndown roads”, said NIBULON’s General Director.
He added that by investing in the shipyard NIBULON confirmed that Ukrainian shipbuilding had the future and it would be developed. “We will prove that Ukraine is a marine country and not a country at the seaside. We have sufficient potential to be the best in Europe. This will also be a positive signal for Ukrainian ironworkers whose metal will be used to build vessels that will fly the Ukrainian flag. The company plans to build up to 15 vessels annually”, noted Oleksiy Vadaturskyy.
Upon completion of the investment program for development of river logistics, the annual volumes of grain and oilseeds transportation along Ukraine’s rivers will reach 4 million tons. The company plans to transport other cargoes by rivers. “We will do everything to transport Ukrainian cargoes to Belarus by rivers, and along the inland waterway of international significance E40 to the European Union. We also start scheduled passenger transportation in Mykolaiv and Kherson regions in May”, said Oleksiy Vadaturskyy.
He also announced a round table that will be held on May 24 on development of NIBULON shipbuilding and repair yard taking into account worldwide best practice, prospects for the development of shipbuilding industry in Ukraine as a whole, loading of domestic shipbuilding enterprises. The experts and specialists of the industry both from Ukraine and the Netherlands, with the support of the Embassy of the Kingdom of the Netherlands, will be its participants.
NIBULON’s General Director stressed that the company is implementing its large-scale program without support from the Ministry of Infrastructure of Ukraine which, according to him, uses such initiatives only for PR purposes.
The company also works efficiently in other industries. In particular, according to Oleksiy Vadaturskyy, in 2016, NIBULON received the maximum gross yield of grain for all years of its production activity – 340.3 thousand tons, which is 10% more than in the “record” 2015. “This is the best result for all years of activity”, said NIBULON’s General Director.
He also reminded about the social projects that are being implemented by NIBULON. For example, at the beginning of April, the local community of Bilenke village (Zaporizhzhia region) received the complex of treatment facilities worth UAH 10 million; it actually saved the region from the environmental disaster.
“We do everything to make Ukraine a European state in all respects. We are pleased with the fact that achievements of our company, patriotism and creativity of NIBULON’s team are respected by well-known financial institutions”, stressed Oleksiy Vadaturskyy.
He reminded about the fact that NIBULON has been cooperating with the European Bank for Reconstruction and Development since 2010. In addition, in December 2016, the loan agreement between NIBULON and the European Investment Bank for a total amount of USD 74 million was signed in Brussels in the presence of the Vice-President of the European Commission responsible for Energy Union Maroš Šefčovič.
“For the first time in 25 years of independence of Ukraine the EIB without guarantees of the state or banks, only under financial obligations of NIBULON, allocated funds directly to the Ukrainian company. This is a testament to the stable financial status of our company”, stressed Oleksiy Vadaturskyy.
The International Finance Corporation (IFC) has decided to allocate a loan of USD 90 million to NIBULON; the money will be aimed at further development of the infrastructure of the agrarian sector and river transportation in Ukraine.
NIBULON is a perfect example of successful and effective work in such difficult conditions. “The most respected financial institutions of the world, such as the International Finance Corporation, the European Investment Bank, and the European Bank for Reconstruction and Development are our partners. Together we will do everything to bring Ukraine to the level of advanced European states”, said Oleksiy Vadaturskyy.