Laws on ESCO Implementation and Long-Term Budget Commitments Passed by Verkhovna Rada

Draft Laws # 1313 and #1409 on ESCO implementation, including budget code amendments were adopted by Verkhovna Rada. P3DP provided input to their development and advocated for their adoption. These drafts introduce incentives for energy modernization through Energy Performance Contracts and long term budget commitments, which is an important consideration in implementing PPPs.

State Agency for E-Government Explores Methods to Engage Private Sector

P3DP conducted a two-day training event for management and staff of the State Agency for E-Government on alternative approaches to engage the private sector through public-private partnerships in e-government. The workshop provided practical examples of how similar countries mobilize private investment and expertise. P3DP will support efforts of the Agency and municipalities to identify viable PPP opportunities to introduce services that increase efficiency and reduce corruption.

New Laws Governing ESCO Agreements Adopted in Ukraine

Draft Laws # 1313 and #1409 on ESCO implementation and corresponding Budget Code amendments were adopted in first reading. The draft laws introduce incentives for energy modernization through Energy Performance Contracts and Long Term Budget commitments. P3DP provided input to the amendments’ development and promotion.

 

PPP and Infrastructure Expert Center Launched

PIEC

A major challenge to improving the investment climate is getting the attention of government with recommendations, proposed legislation, or new ideas. For PPP development in Ukraine, this obstacle has been overcome through the launch this month of the PPP and Infrastructure Expert Center (PIEC), a joint effort by P3DP and the American Chamber of Commerce (AmCham) in Ukraine.

PIEC, which is based within the Chamber, will serve as a platform for businesses and other stakeholders to advocate for reforms that improve the environment for Public-Private Partnerships and investment into infrastructure.  Activities and services will also include promoting opportunities and facilitating the closure of specific PPP agreements.  By joining forces, P3DP and the Chamber are confident that the design and success of reform efforts will be increased.

The event, attended by approximately 80 representatives from the private sector, helped cement P3DP as an authority on PPPs in Ukraine. Since the launch, P3DP numerous companies have approached P3DP with questions about PPPs, including Nestlé. Andriy Bilousov,  Deputy Minister of Regional Development, Construction and Housing and Communal Services of Ukraine and Andriy Bondarenko, Deputy Minister of Infrastructure of Ukraine, spoke at the event and expressed strong support.

AmCham, founded in 1992, represents foreign investors in Ukraine and is a strong advocate for policy reforms. The establishment of PIEC ensures that potential investors will have a voice in the development of Ukraine’s PPP policies and that PPPs will continue to develop after P3DP closes in September 2015.

News coverage of PIEC’s launch (Ukrainian)

Agricultural Waste as a Biofuel

Cities and industry aren’t the only source of waste in Ukraine. The country’s agricultural sector, which produces over 50 million tons of grain annually, generates huge amounts of straw as a by-product. When compressed into pellets, it burns at temperatures high enough to substitute for natural gas or coal to provide heating.

In Malyn, a town of 27,000 in Ukraine’s Zhytomyr Region, USAID is advising city officials on a PPP to heat schools using straw pellets as an alternative, renewable biofuel. The PPP will reduce costs, enable the schools to operate at warmer temperatures, and provide local producers of pellets with a new market.

Furthermore, heating with agricultural waste doesn’t contribute to greenhouse-gas emissions, as the carbon released by burning equals the carbon absorbed by crops during the growing season. The PPP tender was completed in the first quarter of 2014.