AGT on cancellation of OPP tender: technical and legal barriers did not allow investors to submit applications

The tender for the privatization of the Odesa Port Plant announced by the State Property Fund has been canceled due to the lack of participants. Agro Gas Trading claims that this situation was a direct consequence of procedural obstacles that made it impossible to submit applications even for investors who met all the requirements.

"AGT submitted an application one of the first and met all the formal conditions, but instead of a regulated procedure, it received an opaque combination of technical and legal barriers that made it impossible to complete the application," the company noted.

According to AGT, the company did not receive access to the information package and was unable to pass the basic technical stages: "In such a situation, the "lack of applications" is a direct consequence of barriers that did not allow bona fide participants to even reach the starting line."

AGT emphasizes that it is impossible to expect a competitive auction where a potential participant is stopped at the first step - access to documentation.

The company also draws attention to the fact that OPP is one of the key producers of mineral fertilizers in Ukraine. "The full-fledged operation of the enterprise means stability for the agricultural sector, new jobs and additional revenues to the budget. Such an asset cannot be "put on pause" - delays and repeated disruptions of privatization only deepen the degradation of the infrastructure," AGT emphasizes.

AGT also recalled that attempts to privatize OPP have been ongoing for many years. The last official competition with fixed conditions was held in 2016 and was canceled due to the lack of participants after setting an excessive starting price.

"The fact that the auction did not take place again does not indicate a lack of interest in the asset. This means that even with the presence of investors, the process is organized in such a way that it is technically impossible to complete it," AGT said.

The company believes that unified technical requirements, clear regulations and control over the work of electronic platforms should become the basis of the new privatization procedure.

"The cancellation of the competition is an opportunity to correct systemic shortcomings so that the next privatization attempt does not scare away investors," AGT added.

The company confirmed its readiness to participate in the privatization of the OPP on equal terms.