Draft Law on PPP in Parliament Prepared for 2nd Reading in Rada

P3DP participated in the Entrepreneurship and Industrial Policy Parliamentary Committee meeting to present final recommendations to the draft law. A number of discordant issues were resolved in areas such as budgetary commitments and differences of PPP laws versus general public procurement. P3DP expects the draft law to be registered for the second reading during the week of May 18-22.

Experts Presented Best Practices of Investment Public-Private Partnership Projects of Turkey

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Kyiv, November 28, 2014 - USAID Public Private Partnership Development Program and the American Chamber of Commerce in Ukraine held a meeting of the Public Private Partnership & Infrastructure Expert Center aimed at discussing Turkish experience of public private partnership projects implementation as well as feasibility of using the country’s best practices to develop appropriate mechanisms in various sectors of Ukrainian economy.

Turkey has successful experience in implementing projects of public-private partnership based on flexible public policies to support municipalities in establishing joint projects with businesses. Thus, due to using public-private partnership mechanisms by the Ministry of Health , the country has built 25 hospitals that provide 25,000 beds for in-patient treatment. As another example, the Ministry of Transportation has implemented the construction of two airports in Istanbul as well as those in Ankara and Izmir, which continue to operate under the public-private partnership. Among others – projects in urban environment restoration, construction and development of industrial parks, techno-parks, shopping complexes, pipelines as well as waste management development.

Participants of the Expert Centre also learned about the plans of the Government of Ukraine to establish conditions for investment in national infrastructure, discussed the ways of interacting among representatives of all levels of state authorities, schemes of attracting private partners, projects management models, as well as issues on improvement of legislation. The Turkish colleagues, in their turn, shared their plans to develop business in Ukraine.

“Turkey is the regional leader in using public-private partnership to include the private sector in infrastructure projects,” said Tatiana Korotka, Head of the Chamber Expert Center; Director of Professional Services, Public Private Partnership Development Program (USAID). According to Ms. Korotka, there are many valuable lessons from Turkish experience which can help Ukraine as it develops and implements its own public-private partnership projects.

The experts believe that the use of public-private partnerships will help to solve a lot of problems in various sectors of Ukraine’s economy. In addition thereto, it is a possibility to increase the value of local management in regional development.

Learning from Turkey’s PPP Experience

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Study tours are an excellent tool for sharing best practices in public-private partnerships (PPPs):  participants have the opportunity to talk to people who have faced similar challenges and can see the results with their own eyes.

As part of its objective to improve PPP Support Services of the MOEDT and other government agencies, P3DP sent a delegation of 15 officials to Turkey on a five-day study tour to learn about that country’s experiences with PPPs. The study tour was designed to develop their capacity to formulate effective PPP policies, evaluate proposed PPP projects, promote PPPs and support municipalities in their efforts to develop and implement PPPs.

In contrast to Ukraine, Turkey has used PPPs for decades for infrastructure and public services. The World Bank reports that in 2013, private participation in infrastructure in Turkey increased dramatically to $16.8 billion, by far the largest volume in the Eastern Europe/Central Asia region. There is much to be learned from their experience.

Participants included Roman Kachur, Deputy Minister of the MOEDT who is responsible for PPP policy at the ministerial level; the PPP Unit’s Pavlo Pakholko, Deputy Head of the MOEDT’s Department of Investments, Innovations and PPPs, two representatives from the National Projects Agency, and multiple municipal representatives from Donetsk, Luhansk, Kharkiv, Odesa and Ivano-Frankivsk regions.

During the tour, participants met representatives from government, the private sector, and developmental agencies involved in PPPs, including international development institutions; officials from the Turkish ministries of Development, Transportation, Maritime Affairs, Communications, Health, and the Turkish Investment Support and Promotion Agency; the Istanbul Development Agency and the Ankara Metropolitan Municipality. They also visited several industrial parks being operated under PPPs.

A follow-on event will take place in Kyiv focused on stimulating investment in Ukraine for the study tour participants and other interested stakeholder groups. It will continue the discussion about the approaches used by Turkey to attract investment and apply resulting experience to develop PPP projects in Ukraine, especially in healthcare, solid waste management, energy efficiency, infrastructure development, and industrial park management.

National PPP Forum is postponed

A National PPP Forum on PPP in Ukraine scheduled to take place in Kyiv on January 30, 2014 is postponed until the political situation is stabilized. The forum will bring together governors of the 25 regions of Ukraine and representatives of the Ministry of Economic Development and Trade and other government agencies to assess the PPP environment in Ukraine. The Forum will provide a platform to disseminate recent legal and regulatory improvements, share experience in preparing pilot PPP projects, and identify future actions needed to expand their use.

USAID and EU Delegation to Support Ukrainian Public Finance Sector

P3DP and the European Union Delegation to Ukraine are exploring ways to combine efforts to support their common governmental counterpart, the Ministry of Economic Development and Trade of Ukraine (MOEDT). The two programs agreed to share experience in providing legislative support to enhance and facilitate a more structured reform process in the Ukrainian public finance sector.

P3DP’s Chief of Party, Mick Mullay, and Director of PPP Professional Services Group, Tatiana Korotka, discussed potential collaboration with Eugene Stuart, head of the Support and Harmonization of the Public Procurement System in Ukraine with the EU Standards project. Natalia Korchakova, the EU Delegation’s Sector Manager on Economics, Trade and Territorial Development, also participated.

The EU-funded Project will provide support to the development and continuing reform of public procurement in Ukraine over the next three years. It will also involve state aid regulation and public finance management.

P3DP and the EU Delegation agreed to form a practical working group to coordinate efforts of donor projects, NGOs and other stakeholders to reform public procurement practices in Ukraine.