Expansion of Critical Danube Logistics Chains (RELINC)

Sector
Municipal infrastructure and services
Stream
Development and rehabilitation of municipal infrastructure of subnational governments
Maturity level
0
Preliminary Investment Feasibility Study
Project Status
Investment Feasibility Study
Entry into Portfolio
State level of SPP
Implementation
Completion

General information

Description of the project

The State Enterprise "Sea Ports Administration of Ukraine" is implementing the project "Restoration of Critical Logistics Infrastructure and Network Connectivity (RELINC)" (hereinafter - the RELINC Project) in accordance with the Grant Agreement of the Multi-Donor Trust Fund for Support, Recovery, Reconstruction and Reform of Ukraine between Ukraine and the International Bank for Reconstruction and Development, acting as the administrator of the Multi-Donor Trust Fund for Support, Recovery, Reconstruction and Reform of Ukraine No. TF0C4970, signed on June 12, 2024 (hereinafter - the Grant Agreement). The project envisages the acquisition of specialized port fleet, transshipment equipment and equipment for seaports on the Danube River, namely:

  • multi-functional port vessel;
  • sea tug with azimuthal thrusters;
  • tug on the Danube River;
  • service vessel;
  • personal pilot kits (50 pcs.);
  • gantry crane;
  • front wheel loaders;
  • equipment set for a modern river navigation training complex;
  • automated traffic management and transport information accounting system.

Thanks to the items planned to be acquired within the framework of the RELINC project, it is expected total direct effect for increasing transshipment – at least at the level of 5.5 million tons per year (the figure may be higher due to indirect effects – improving services and accelerating processes, avoiding delays in pilotage, etc.). In addition, a positive environmental effect is expected.

The purpose of the project

Main Goal:

Capacity building

Secondary Goal:

Improving the quality of services

Description of the purpose of the project and ways to achieve it

According to the results of the RELINC project, the overall direct effect for increasing transshipment is expected to be at least 5.5 million tons per year (the figure may be higher due to indirect impact – improving services and accelerating processes, avoiding delays in pilotage, etc.). In addition, a positive environmental effect is expected

Problems and solutions resulting from project implementation

Starting from February 24, 2022, only the seaports of the Danube region had the opportunity to process ships, all other Ukrainian seaports were blocked or occupied. In the pre-war period, the seaports of the Danube region accounted for no more than 5% of the total cargo flow. Thus, the entire cargo flow of Ukrainian exports and imports was forced to be reoriented to the seaports of the Danube region. Therefore, the main task of the Ministry of Development, the State Enterprise "USPA", business and international partners was to ensure stable, coordinated operation of the seaports of the Danube region to fulfill the transport task. Taking into account the excessive workload of the seaports of the Danube region, priority attention was focused on identifying unused reserves to increase the efficiency of their use. In order to improve dispatching in the Danube region, the efficiency of operational processes was ensured (organization of mooring operations, planning of the fleet size, technology for processing cargo from rail and road transport to vessels).

Socio-economic context

Indicator

Value

Other functional

50 units

Other functional

2 units

Other functional

1 units

Other functional

2 units

Other functional

1 units

Other functional

4 units

Capacity

5500000 t

Strategic Case

Strategic feasibility of the project

Sector

Municipal infrastructure and services

Subsector

Development and Reconstruction of Subnational Infrastructure

Stream

Development and rehabilitation of municipal infrastructure of subnational governments

Strategic document

State Strategy for Regional Development for 2021–2027

Task

Task 2 in the direction of “Stimulating the development of territories” of Operational Objective 1. Ensuring integrated development of territories taking into account the interests of future generations Implementation of priority measures for the safety of life, restoration and stimulation of economic activity in territorial communities

Project objectives

Indicator
Base value
Target value
Number of purchased automated traffic management and transport information recording systems (units)
0 units
1 units
Number of purchased specialized port fleet vessels (units)
0 units
4 units
Number of purchased equipment sets for a modern river navigation training complex
0 units
1 units
Number of purchased port loading equipment (front loaders with side swing, portal cranes) (units)
0 units
4 units
Number of Pilot kits (tablets) purchased (units)
0 units
50 units

Project Sustainable Development Goals

Demand for the service and its dynamics

What methodology was used to estimate demand?

Оцінка попиту здійснювалась на основі аналізу показників обсягу обробки вантажів морськими портами Дунайського регіону за період 2022-2024 років
[Response was provided in the Preliminary Investment Feasibility Study]

Has data from external sources been used in the demand assessment?

No
[Response was provided in the Preliminary Investment Feasibility Study]

Does the demand forecast take into account the latest demographic and economic forecasts?

No
[Response was provided in the Preliminary Investment Feasibility Study]
Indicator
Year
Demand
Annual demand for services/infrastructure
1
17396760 t
Annual demand for services/infrastructure
2
32021180 t
Annual demand for services/infrastructure
3
16505160 t
Economic justification

Analysis of the project's impact on ecology and climate change

Does the planned activity have a potential positive contribution to achieving climate or environmental objectives?

Climate change adaptation
[Response was provided in the Preliminary Investment Feasibility Study]
Pollution prevention and control
[Response was provided in the Preliminary Investment Feasibility Study]
Sustainable use and protection of water and marine resources
[Response was provided in the Preliminary Investment Feasibility Study]
Protecting and restoring biodiversity and ecosystems
[Response was provided in the Preliminary Investment Feasibility Study]

Is the proposed project expected to significantly harm any of the following climate or environmental objectives?

None of the options are applicable

Does the planned activity have a potential positive contribution to achieving climate or environmental objectives?

Sustainable use and protection of water and marine resources
[Response was provided in the Investment Feasibility Study]
Pollution prevention and control
[Response was provided in the Investment Feasibility Study]
Protecting and restoring biodiversity and ecosystems
[Response was provided in the Investment Feasibility Study]

Is the proposed project expected to significantly harm any of the following climate or environmental objectives?

None of the options are applicable

Have the greenhouse gas emissions or emission reductions (Scope 1-2) associated with the project been calculated for a typical year and the entire project period?

No
[Response was provided in the Investment Feasibility Study]

Does the project require an environmental impact assessment (EIA) in accordance with the Law of Ukraine "On Environmental Impact Assessment"?

Conducting an EIA is not required.
[Response was provided in the Investment Feasibility Study]

Project sustainability and inclusivity

Identify potential gender risks of the project and indicate possible ways to overcome them:

Not applicable to my project
[Response was provided in the Preliminary Investment Feasibility Study]

Does the project provide for improving women's access to services?

Not applicable to my project
[Response was provided in the Preliminary Investment Feasibility Study]

Are civil society organizations representing women and vulnerable groups included in the consultation process?

No
[Response was provided in the Preliminary Investment Feasibility Study]

Were consultations held with representatives of target groups to take into account gender equality issues in the project?

None of the options are applicable

Have the gender risks and social impacts of the project been assessed?

A plan to mitigate negative social impacts focused on women has been developed
[Response was provided in the Investment Feasibility Study]

Are there management and institutional mechanisms in place to ensure gender equality?

A policy/code of conduct on non-discrimination and gender equality has been developed
[Response was provided in the Investment Feasibility Study]
Not provided for by the project
[Response was provided in the Investment Feasibility Study]

Documents

Name
Date
PlanList STEP 11.03.25.xlsx
12.08.2025
09:33:50 UTC

Alternative technical solutions

Technical Solution 1

Acquisition of specialized fleet, transshipment and other port equipment, information technology system for vessel traffic management

Technical Solution 2

Acquisition of a dredging fleet

Cost breakdownCost justificationCost justification
Project cost (preparation and implementation)1'581'283'000 UAH1'200'000'001 UAH
For preparation6'283'000 UAH1 UAH
For implementation1'575'000'000 UAH1'200'000'000 UAH
Project operation and closure cost60'000'000 UAH40'000'001 UAH
For operation50'000'000 UAH40'000'000 UAH
For closing10'000'000 UAH1 UAH
Average annual costs20'000'000 UAH0 UAH
Project duration, incl.54 months48 months
Deadline for developing a FFS18 months12 months
Implementation period36 months36 months
Service life180 months240 months
Target indicatorsDefined Defined
Technical Solution Status
Active

[The technical approach was selected for further detailed analysis or implementation.]

Rejected

[The technical approach was not selected for further detailed analysis or implementation.]

Components of a technical solution
To components
4
To components
0

Commercial Justification

Supplier and contractor market assessment

Is the project likely to attract a sufficient number of bidders to ensure real competition that will encourage bidders to think innovatively and maximize the quality of their proposals?
Yes

[Response was provided in the Preliminary Investment Feasibility Study]

Is the project of interest to small and medium-sized enterprises?
Yes

[Response was provided in the Preliminary Investment Feasibility Study]

Will the project involve national or international suppliers and contractors?
Yes, both national and international

[Response was provided in the Preliminary Investment Feasibility Study]

Has an analysis of available procurement options been conducted for the technical solution?
Yes

[Response was provided in the Preliminary Investment Feasibility Study]

What procurement strategy was chosen for the project implementation, and what justifies its feasibility in the context of the market and project objectives?
Процедури закупівлі здійснюються відповідно до вимог Світового банку, з яким укладено Грантову угоду

[Response was provided in the Investment Feasibility Study]

What approaches are planned to be used to ensure transparency, competition, and efficiency in the procurement process?
Придбання флоту та обладнання здійснюється на майданчику PROZORRO

[Response was provided in the Investment Feasibility Study]

What types of procurement procedures are envisaged by the project (open tender, negotiated procedure, competitive dialogue, etc.)?
Open competitive bidding

[Response was provided in the Investment Feasibility Study]

Pre-market engagement
Здійснено моніторинг цінових пропозицій щодо запланованих предметів закупівель

[Response was provided in the Investment Feasibility Study]

Potential market participants
Виробниками флоту та обладнання можуть бути як відчинянні, так і іноземні виробники в залежності від пропозицій наданих в рамках планової закупівлі

[Response was provided in the Investment Feasibility Study]

Market readiness assessment
Виробників флоту та обладнання достатньо

[Response was provided in the Investment Feasibility Study]

Financial justification

Total project budget

Total preliminary budget1'641'283'000 UAH1'240'000'002 UAH
Project cost (preparation and implementation)1'581'283'000 UAH1'200'000'001 UAH
For preparation6'283'000 UAH1 UAH
For implementation1'575'000'000 UAH1'200'000'000 UAH
Project operation and closure cost60'000'000 UAH40'000'001 UAH
For operation50'000'000 UAH40'000'000 UAH
For closing10'000'000 UAH1 UAH
Were the methodological recommendations approved by the Ministry of Finance of Ukraine applied when calculating the indicative budget?
No
[Response was provided in the Preliminary Investment Feasibility Study]
Were the methodological recommendations approved by the Ministry of Finance of Ukraine applied when calculating the indicative budget?
No
[Response was provided in the Investment Feasibility Study]

Average project cost per service recipient

Service UnitФлот та обладнання
Service Unit Cost1'575'000'000 UAH

Profitability of the project

Is the project expected to generate income?NoNo
Is the project self-sustaining?No

Availability of services

Has an analysis been conducted of the accessibility of services for consumers and their financial ability to pay the established tariffs?
Not applicable – the project does not provide for the provision of paid services or the establishment of tariffs

[Response was provided in the Preliminary Investment Feasibility Study]

Project Financing Mechanisms

Are funding sources and mechanisms identified?

Source and MechanismYesNo

Funding Sources

Approved Funds0 UAH0 UAH
Expected Funds10'338'000 UAH0 UAH

Public-private partnership

Has a qualitative and quantitative assessment of the project's suitability for implementation through a PPP mechanism been conducted?
The project does not fall under the PPP format by its nature/character

[Response was provided in the Preliminary Investment Feasibility Study]

Are there, after conducting an appropriate study, private investors interested in the possibility of implementing the project in the PPP format?
No

[Response was provided in the Preliminary Investment Feasibility Study]

Management Rationale

Team competencies

Determine which competencies/expertise required for successful project preparation and implementation can be provided by the project initiator's own project team (without involving external advisors)
Strategic justification - analysis of the strategic feasibility of the project

[Response was provided in the Preliminary Investment Feasibility Study]

Economic justification - economic analysis

[Response was provided in the Preliminary Investment Feasibility Study]

Project management - communication with stakeholders

[Response was provided in the Preliminary Investment Feasibility Study]

Project management - risk management

[Response was provided in the Preliminary Investment Feasibility Study]

Economic feasibility study - technical expertise

[Response was provided in the Preliminary Investment Feasibility Study]

Business case - analysis of available procurement options

[Response was provided in the Preliminary Investment Feasibility Study]

Project management - legal support

[Response was provided in the Preliminary Investment Feasibility Study]

Project management - working with international financial organizations (IFOs)

[Response was provided in the Preliminary Investment Feasibility Study]

Financial analysis - financial analysis

[Response was provided in the Preliminary Investment Feasibility Study]

Strategic rationale - demand analysis

[Response was provided in the Preliminary Investment Feasibility Study]

Economic justification - environmental expertise

[Response was provided in the Preliminary Investment Feasibility Study]

Business case - analysis of the market environment

[Response was provided in the Preliminary Investment Feasibility Study]

Does the team have experience implementing similar projects?
Yes, successfully implemented 1 or more similar projects

[Response was provided in the Preliminary Investment Feasibility Study]

Identify which competencies/expertise required for successful project preparation and implementation need to be strengthened by engaging independent experts or consultants
Economic feasibility study - technical expertise

[Response was provided in the Preliminary Investment Feasibility Study]

Economic justification - social and gender analysis

[Response was provided in the Preliminary Investment Feasibility Study]

Strategic justification - forming a justification for the problem and need

[Response was provided in the Preliminary Investment Feasibility Study]

Management rationale - public consultation

[Response was provided in the Preliminary Investment Feasibility Study]

Business case - analysis of the market environment

[Response was provided in the Preliminary Investment Feasibility Study]

Economic justification - environmental expertise

[Response was provided in the Preliminary Investment Feasibility Study]

Management rationale - project management

[Response was provided in the Preliminary Investment Feasibility Study]

Management rationale - communication with stakeholders

[Response was provided in the Preliminary Investment Feasibility Study]

Business case - analysis of available procurement options

[Response was provided in the Preliminary Investment Feasibility Study]

Economic justification - economic analysis

[Response was provided in the Preliminary Investment Feasibility Study]

Management justification - other

[Response was provided in the Preliminary Investment Feasibility Study]

Financial analysis - financial analysis

[Response was provided in the Preliminary Investment Feasibility Study]

Management rationale - risk management

[Response was provided in the Preliminary Investment Feasibility Study]

Strategic rationale - demand analysis

[Response was provided in the Preliminary Investment Feasibility Study]

Management rationale - working with international financial organizations (IFOs)

[Response was provided in the Preliminary Investment Feasibility Study]

Management justification - legal support

[Response was provided in the Preliminary Investment Feasibility Study]

Is there an understanding of where to find relevant experts and consultants?
Yes, negotiations are already underway.

[Response was provided in the Preliminary Investment Feasibility Study]

Is the project management structure defined: working group, chair, project team?
Yes

[Response was provided in the Investment Feasibility Study]

What categories of experts and consultants have already been involved at the project preparation stage?
Financial consultants/modelers

[Response was provided in the Investment Feasibility Study]

Economic analysts

[Response was provided in the Investment Feasibility Study]

Strategic consultants

[Response was provided in the Investment Feasibility Study]

Technical experts

[Response was provided in the Investment Feasibility Study]

Management experts / project managers

[Response was provided in the Investment Feasibility Study]

Are there plans to involve experts and consultants for further implementation of the project?
Yes

[Response was provided in the Investment Feasibility Study]

Risk assessment

Financial riskDefinedUndefined
Political riskDefinedUndefined

Organizational events

ResponseDefinedUndefined
Results of the feasibility analysis
Project Preparation Program Engagement and Funding Needs

Is there ongoing cooperation or support within the framework of international technical assistance (ITA) or from other donor or government agencies?

Yes
[Response was provided in the Preliminary Investment Feasibility Study]

Does the project require preparation assistance from Project Preparation Programs (PPF)?

None of the options are applicable

Does the project require additional preparation assistance from Project Preparation Facilities (PPF)?

None of the options are applicable
Need for financing

Does the project require additional funding for preparation?

No
[Response was provided in the Preliminary Investment Feasibility Study]

Project Approval History

DateDecision NumberPortfolioProject StatusDecisionReasonsMaturity level
17/08/2025SP-N-170825-68869556State SPInvestment Feasibility StudyInclude--
01/10/2025SPP-N-011025-B422EB52State SPPInvestment Feasibility StudyInclude-0