Public-Private Partnership: Verkhovna Rada improves mechanism for attracting private investments for Ukraine’s reconstruction

The Verkhovna Rada of Ukraine has passed Bill No. 7508 in its second reading and as a whole, simplifying private business participation in reconstruction through the public-private partnership (PPP) mechanism. The document addresses several issues: it streamlines bureaucratic procedures, provides financial guarantees for investors, and enables faster project implementation.

What the bill changes:

Introduction of an Electronic Trading System (ETS): Concession projects will follow EU standards and procedures, conducted entirely online from posting tender announcements to publishing signed contracts.

New and improved guarantees for investors and creditors: Private partners will receive state guarantees protecting their rights, ensuring stable conditions, and non-discriminatory treatment during PPP project implementation. Legislative changes will not affect existing contracts.

New funding sources: The legislation introduces the concept of a “donor” – international partners who can provide financial support directly or through budgets. This approach significantly reduces risks for private partners and makes projects more accessible for public partners.

Simplified procedures for “small” projects: Projects costing up to €5.5 million can be implemented without a feasibility study, based solely on a concept note. This will help communities develop faster by attracting private partners to build local roads and essential social facilities in a shorter timeframe.

“Infrastructure on Installments”: The state can pay   for infrastructure projects from budget funds after the facility is operational. This reduces the burden on budgets at various levels and enables more socially significant projects despite limited funding.

Expanded list of public partners: State-owned companies can now participate in PPPs, attracting more investments.

Special procedures for housing construction projects: Due to large-scale destruction and the need to provide people with new homes, specific provisions have been introduced for PPP contracts related to housing.

Reference source: http://surl.li/asdfghwertyu

 

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