Viktor Medved believes that concession of ports is better than privatization - UNN Viktor Medved

The Ministry of Infrastructure has initiated the transfer of a number of Ukrainian ports to concession. Economic experts Viktor Medvid and Oleksandr Savchenko told UNN about the advantages of this decision.

"If we have to choose between two options: concession or privatization, concession is definitely preferable, because concession provides for the possibility of terminating the concession agreement and the state retains ownership rights. It is like a long-term use, a long-term lease," commented Viktor Medvid.

Among the main advantages of the concession, in addition to state ownership, the expert says, is the reduction of budget expenditures for the maintenance of infrastructure facilities while they are being developed through investment by the concessionaire.

Concessions, unlike privatization, help to avoid cases when state-owned facilities fall into the wrong hands, says Oleksandr Savchenko, Doctor of Economics, Professor.

"Privatization can have disadvantages, for example, Russia can privatize something and close it. It has often done so with enterprises that are competitive for it. An aluminum plant, for example. So there are risks that the company will fall into the wrong hands.

The advantages of a concession are fixed requirements for the company that takes over the management of, for example, a port and it pays a fixed amount, if it violates the agreement, it can be terminated," the expert said.