At the completion of P3DP’s three-day PPP “Train-the-Trainers”, the 21 participants announced their plans to establish the Ukrainian Association of PPP Trainers and Consultants. Their goal is to ensure that future and current municipal and business leaders in Ukraine acquire knowledge and skills necessary to create and manage viable PPPs. Participants also shared how their experiences in introducing PPP courses. KMBS presented how PPP modules are now incorporated into each of their MBA programs.
Oleksiy Shostak, the mayor of Malyn, a city located in north central Ukraine, smiled with satisfaction as he watched a group of third graders leaving Malyn School #1. This past winter, three schools in the city switched from natural gas to biofuel heating.
Shostak glanced at the boiler house, which provides heat for the schools’ 1,700 students. “I think the city will have no trouble meeting the new restrictions on imported natural gas,” he said. “This will also allow us to cut municipal heating costs.”
In 2012, Russian natural gas was increasing in price and supply was becoming vulnerable to political disagreements. That’s when the Zhytomyr Regional Council turned to the USAID Public-Private Partnership Development Program for help to convert municipal boiler houses from imported natural gas to locally produced biofuel. The council needed help to attract funds and expertise from the private sector.
Switching to locally available biofuel, such as wood or straw pellets, had the potential to reduce expenses while ensuring a reliable supply of heating fuel. USAID selected Malyn, which is located in Zhytomyr oblast, for a pilot project to test a newly developed business model known as a public-private partnership (PPP), which leverages the expertise and resources of the private sector.
“Zhytomyr oblast has a wealth of wood and agricultural byproducts, and it is shame to waste it by using natural gas for heating,” said Georgiy Geletukha, head of the Bioenergy Association of Ukraine. “With these resources, it shouldn’t take Ukraine long to substitute up to 18 percent of its natural gas use with local biofuel.”
Lviv, Ukraine (November 20-21, 2014) – A conference entitled “Developing Best European Practices of Inter-municipal Cooperation in the Solid Waste Management Sector in Ukraine” took place in Lviv, where representatives of the local and central government, businesses and the donor community discussed how the impact of proposed legislative changes by the Ministry of Regional Development, Construction, Housing and Communal Services will affect private investments in the waste management sector. Participants also shared international and Ukrainian experiences in the solid waste management.
The event was jointly organized by Ministry of Regional Development, Construction, Housing and Communal Services, the U.S. Agency for International Development (USAID) Public Private Partnership Development Program (P3DP), the German Federal Enterprise for International Cooperation (GIZ), and the Swiss-Ukrainian project “Decentralization Support in Ukraine” (DESPRO).
When opening the Conference, Deputy Minister of Regional Development, Construction, Housing and Communal Services of Ukraine Mr. Andriy Bilousov highlighted: “Ukraine needs investments and private sector participation in all aspects of waste management to improve services and protect the environment. The private sector has the resources needed to introduce modern technology and management, and change consumer and industry habits to increase recycling and protect the environment.“
“The partnership with the private sector is key for the modernization and development of the solid waste management” – said Jed Barton, USAID Regional Mission for Ukraine, Belarus and Moldova Director. – Private companies have the resources, management experience and technical knowledge in order to protect the environment and provide better services more efficiently.
“Decentralization reform requires special attention of local authorities to development projects. One form of such projects is public-private partnerships. In order for the projects to be economically sustainable, it is important for the central government to introduce the right tariff policy to stimulate long-term private investment, for example, in the sector of solid waste management.” said Tetyana Korotka, Director of Professional Services of the USAID Public Private Partnership Development Program.
The USAID Public Private Partnership Development Program provides assistance to the Government of Ukraine in improving the legal environment for PPPs, increasing the capacity of authorities to develop and manage PPPs, and provides assistance in all stages of preparation and implementation of PPP pilot projects.
The American people, through the U.S. Agency for International Development (USAID), have provided economic and humanitarian assistance worldwide for 50 years. In Ukraine, USAID’s assistance focuses on three areas: Health and Social Transition, Economic Growth and Democracy and Governance. USAID has provided technical and humanitarian assistance to Ukraine since 1992. For additional information about USAID programs in Ukraine, please call USAID’s Development Outreach and Communications Office at: +38 (044) 521-5741. You may also visit our website: http://ukraine.usaid.gov or our Facebook page at https://www.facebook.com/USAIDUkraine.
On November 3-7, 2014 P3DP organized and conducted a “Training-of-Trainers” (ToT) workshop for university faculty members and trainers of institutions tasked with preparing future public servants or supporting current staff tasked with creating PPPs.
21 professional teachers and trainers from 13 institutions of higher learning and postgraduate education. Among them were: National Academy of Public Administration in Kyiv and its regional branches in Kharkiv, Odessa, Lviv and Dnipropetrovsk; Main State Service, Universities from Odessa, Kharkiv, Kyiv and Zaporizhia.
Throughout the P3DP program period, government and municipal leaders have been given the opportunity to gain PPP knowledge and skills. Practical workshops, seminars and other training events have introduced general PPP concepts, international practices, as well as tools for analyzing the technical, financial and environmental feasibility of proposed PPPs. In addition to the training materials, the process of developing the PPP pilot projects has generated practical information on how to create PPPs in the sectors of waste management, alternative fuels in district heating, healthcare, sports and recreation, and city park management. To share this experience, P3DP has developed a series of case studies based on this experience.
As a step toward institutionalizing this knowledge and teaching tools, P3DP organized a ToT course with the goal to improve the capacity of local institutions to support municipalities and government agencies by developing their capacity to attract private sector investment and resources in order to build infrastructure and improve public services through the public-private partnerships.
The objectives of the training included:
- Equipping participants with knowledge, skills and materials for teaching PPPs in their respective institutions;
- Expanding the number of local government officials with the capacity to develop PPP projects; and
- Disseminating P3DP‘s accumulated experience in developing PPP projects.
The session was conducted by Ukrainian training experts from the Consortium for Enhancement of Ukrainian Management Education, who worked closely with the PDP staff to prepare materials and case studies. The introductory note was provided by Ms. Ksenia Liapina, member of the Ukrainian Verkhovna Radaand the author of the PPP Law, P3DP’s Chief of Party Mick Mulley and Olena Maslyukivska, P3DP’s Manager of Awareness and Capacity Development.
The training combined theory, case studies, a site visit and participant development of action plans under professional guidance. The Agenda included the following:
- Teaching with Cases: Theory and Ukrainian Practice
- Teaching PPPs: participant action plans
- Ukrainian PPP Cases:
- Kyiv Sports & Recreation Project (with a site visit)
- Healthcare PPP Project in Zaporizhzhia
- Biofuel Heating PPP Project in Malyn
- Landfill Gas and Electricity Generation PPP Project in Vinnytsia
- Simferopol City Park PPP Project
PPP and Infrastructure Expert Center (PIEC) held a successful promotional event on June 4 when Serhiy Nadal, Mayor of the western city of Ternopil, gave a talk about potential projects for the city. Mayor Nadal is familiar with PPPs as a mechanism for attracting private investment for public service projects and took the opportunity to discuss them with approximately 30 potential investors. He focused the need for private sector participation in healthcare, education, transportation, communal services, and other sectors. Energy efficiency and environmental protection were also highlighted. He was joined by members of the Ternopil City Council.
PIEC was established in May 2014 to serve as a platform for promoting PPPs. The meeting with Ternopil city officials was the first held by PIEC for showcasing opportunities in Ukrainian municipalities. PIEC plans to host other mayors of progressive cities to address issues and help prioritize reform and advocacy efforts.
On December 5, 2013, P3DP co-organized an International Conference with the Ukrainian Agrarian Business Club: Doing Agribusiness in Ukraine: Perspectives for 2014. At the plenary session, P3DP’s international expert Edward White spoke to over 300 participants about the use of PPPs in agriculture, drawing from global experience. During a break-out session on PPPs in Agriculture, P3DP led a discussion focused on developing pilot PPP projects in the Ukrainian agricultural sector.
Over 30 participants from private companies, professional associations, academic institutions and USAID projects discussed various aspects of PPPs in Ukraine with great interest and an emphasis on specific experience. Although none of the projects discussed were launched under Ukraine’s PPP law, there is ample experience, particularly in USAID projects, that illustrates the mechanisms and benefits of private sector participation in the development of agricultural infrastructure.
Mykola Hrytsenko, USAID Agroinvest Project Manager of Market Infrastructure Development, discussed their experiences partnering with local governments in developing infrastructure for agrarian markets. Viktor Andrievskiy, Director of the Agricultural Markets Development Institute, which is implementing the USAID Water for Crimean Agri-sector Project, shared the experience of using PPP models for renovating the water supply infrastructure for rural populations and agricultural production in Crimea. Ruslan Tormosov, Director of USAID Local Alternative Energy Solutions in Myrhorod, talked about his vision of using a PPP to establish a logistical center for providing steady supply of biomass to boiler houses.
Following the Conference, P3DP wrote an article, Public-Private Partnerships in Agriculture: International Lessons Learned and Opportunities for Ukraine, which highlights areas where PPPs are used internationally in agriculture, including an analysis of the Ukrainian legal and institutional framework.
You can download speaker papers and presentations at the following links:
- Public-Private Partnerships (PPPs) in Agriculture: International Lessons Learned & Prospects for Ukraine, white paper by Ned White (English).
- Public-Private Partnerships (PPPs) in Agriculture: International Lessons Learned & Prospects for Ukraine, presentation by Ned White (English / Ukrainian).
- Practical Experiences in Ukraine: Partnering with Local Governments in Developing Infrastructure for Agrarian Markets by Mykola Hrytsenko, Manager of Market Infrastructure Development, USAID Agroinvest Project (Ukrainian).
- Use of PPP for Establishing a Logistical Center for Providing a Steady Supply of Biomass to a Network of Boiler Houses by Ruslan Tormosov, Executive Director, ICF Municipal Development Institute (Ukrainian).
- Use of PPP models for Renovation of the Water Supply Infrastructure for Rural Populations and Agricultural Production in Crimea, by Viktor Andrievskiy, Director Agricultural Markets Development Institute, USAID Water for Crimean Agri-sector (Ukrainian).
P3DP’s success training in Energy Efficiency and Renewable Energy PPPs in Zhytomyr (see story on page 1) isn’t the only way P3DP is promoting investments in clean energy in Ukraine. We use a multi-pronged, complementary approach to dealing with climate issues. Our approaches include:
- Promoting Clean Energy through Legislative Engagement. P3DP has included provisions promoting clean energy in Ukraine’s PPP policy and provided input to draft legislation. These inputs are expected to encourage use of ESCO contracts, improve solid waste management, and encourage PPPs for for improving the resource and energy efficiency of the housing and communal sector.
- Building Environmental Knowledge and Capacity. In addition to teaching national, regional and municipals about the fundamentals of public-private partnerships, P3DP demonstrates how the private sector can contribute to low emission, sustainable economic development through financing, technology, and managerial know-how.
- Clean Energy Pilot PPP Projects. P3DP’s pilot PPP projects have a positive impact on greenhouse gas emissions and greater energy efficiency. Pilots in Vinnytsia, Ivano-Frankivsk, Dnipropetrovsk and Malyn are expected to demonstrate how PPPs can mitigate climate change by generating electricity with landfill gas and biofuel and use of energy-efficient street lighting. Estimated reductions resulting from U.S. Government assistance delivered through P3DP will be equivalent to 998,159 metric tons of CO2.