Full competitive tendering for public private partnerships (PPPs) is considered best practice, as a general rule, for PPP procurement. This note looks at two instances in which there might be less than full competition: the case where there is only one bidder and the case of unsolicited proposals. The note examines practice in other countries and makes suggestions for Ukraine.
Full competitive tendering for public private partnerships (PPPs) is considered best practice, Governments around the world have become acutely aware that PPPs can result in large future fiscal commitments that may not be apparent because they are not accounted for in the same way as normal liabilities (e.g. government debt). Contractual commitments to pay the PPP company over 20–30 years are technically not debt service, but they can have a similar fiscal impact. This note looks at the issues, especially in the context of municipal PPPs, discusses approaches used in other countries, and then gives suggestions for how Ukraine might deal with these questions as a first step.
For public private partnership (PPP) contracts to be effective, they must be enforceable. However, in many countries, the national court systems are not up to the task of resolving disputes that might arise in a PPP contract. An alternative to the courts is arbitration, which in many countries is the preferred method of dispute resolution for PPPs – especially when foreign investors are involved. This note examines options available for dispute resolution in Ukraine outside the court system focusing on the municipal level, including both international and domestic commercial arbitration. It provides an overview of the relevant legislation, issues about selecting arbitrators, enforcement issues, and questions about the use of specialized experts. If the final dispute resolution mechanism is the Ukrainian judicial system, parties to a PPP contract in Ukraine will have little confidence that their contractual rights will be upheld in court. This adds substantial risk, especially for the private partner, and constitutes a major constraint to private partners being willing to make significant investments in the PPP project and to banks being willing to lend large amounts. Mitigating dispute resolution risk is therefore critical if PPPs are to develop in Ukraine.
Public-Private Partnerships (PPPs), which have long been applied in the traditional economic infrastructure sectors, have been applied more recently to the agriculture sector. Ukraine can learn from global experience in using PPPs to expand and improve its agricultural competitiveness. This Guidance Note explores agricultural PPPs in greater depth and provides concrete examples drawn from global experience as applied to the agricultural sector. It also examines lessons drawn from international experience to provide a road map for Ukrainian policymakers and stakeholders, enabling them to expand the potential benefits of PPPs in this important sector.