Ecovis Global > The Challenges and Perspectives of Public-Private Partnership in Ukraine
The Challenges and Perspectives of Public-Private Partnership in Ukraine
15. February 2021
On 20 January 2021, the Ukrainian Government passed a draft law which now allows the state to conclude ambitious public-private partnership (PPP) agreements, despite restrictions in national budget planning.
The process of PPP in Ukraine is currently regulated by a number of acts and various bylaws. Nevertheless, there are some difficulties in performing PPP projects related to the budget process in Ukraine. At the moment, the state authorities are unable to take long-term responsibilities for PPP due to restrictions in national budget planning. The new law should make it possible to implement various projects in socially valuable areas such as infrastructure and/or the energy sector.
The combination of the state and business resources can be the right solution for the implementation of large-scale and costly infrastructure projects. However, the right framework conditions must be in place for PPP to be effective and contribute to industrial development. These include the proper legal regulation of the partnership, transparency in the choice of private investors and the assessment of all possible risks.
We look forward to the development of the PPP regulation in Ukraine, as this will have a positive effect on the infrastructure sector as well as the country's economy in general. Mariia Stepanenko, Associate, ECOVIS Bondar & Bondar, Kyiv, Ukraine
The Ministry for Development of Economy, Trade and Agriculture of Ukraine, which has drafted the law, assures that the amendments mean that the state can guarantee its obligations in PPP and develop new infrastructure projects in Ukraine.
The experts from ECOVIS Bondar & Bondar advise clients on a full range of PPP projects. They assist private investors, project developers, concessionaires, lenders and contractors with all aspects of PPP arrangements in Ukraine.