Dnipro Development Initiative

The Dnipro Development Initiative is a partnership between the Ukrainian government and potential donors, in which the Netherlands provides its unique expertise in the Water sector. This expertise will help to develop projects that can be financed by International Financial Institutions (IFI) like the World Bank, EIB and EBRD, and businesses through Public Private Partnerships (PPP). The European Union is also a partner in the innovation of the governance of waterway management.

Ukraine is reorienting its economy towards exports and towards new overseas markets. Agriculture will play a leading role in this effort. The Ministry of Infrastructure of Ukraine is elaborating the National Transport Strategy to provide for an optimal mix of transport modalities to support economic development. Internal waterways transport is a key transport modality which has been underutilised during several decades. It can provide cost-effective transport solutions for growth of exports. That is why Ambassador Klompenhouwer and Minister Omelyan launched the Dnipro Development Initiative on the development of inland waterways and sea ports.

The Embassy will cooperate with the Ukrainian Ministry of Infrastructure on the development of inland waterways and
seaports. The Minister of Infrastructure Volodymyr Omelyan stressed that Dutch knowledge is indispensable in developing the infrastructure of Ukrainian waterways. He is looking to develop PPPs in the water sector, the ports of Oktyabrsk and Kherson, the management of the river Dnipro and the restoration of the locks in the river. Under the DDI these and other projects in water management will be taken up. The Netherlands is not an exclusive partner to Ukraine under this initiative, but will seek to cooperate with other (EU)-countries and IFI's such as the World Bank, EIB and EBRD.

Activities

The first step in our Dutch approach is to ‘Follow the Cargo’, to know how much traffic is currently on the river and what the potential cargo growth potential and economic benefit is. This will enable to government to assess which investments are viable for developing infrastructure projects to be financed by IFI’s and PPP’s respectively. On 8 November, we held a discussion with the key stakeholders of the inland waterways, together with the American Chamber of Commerce. The EIB is looking into the possibility of starting an extensive study of the economic potential of the river.

After the study of the US Army Corps of Engineers (USACE) of the locks in the Dnipro, the next step is to validate the needed investments and repairs in a technical study. The EBRD has announced to be willing to take this on. The Netherlands is looking at developing an Asset Management System and the World Bank is performing a study on the lower Dnipro logistics and port development.

In 2016 several other activities have been undertaken, like a trade mission to Kherson and Mykolaiv, meetings, dinners and a seminar. Representatives of Ukrainian government agencies will visit the Netherlands to gain insight into the Dutch approach and expertise in the water sector. In 2017 we will organize more events in the context of DDI and will the first projects to the development of the river start.

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