Is there a role for the private sector in addressing the long-term housing needs of Ukraine’s internally displaced persons? According to a recent study conducted by the USAID Public-Private Partnership Development Program (P3DP), there is.
P3DP presented its study Facilitating Private Sector Participation in Delivery of Humanitarian Aid and Infrastructure Rehabilitation in the Housing Sector – Laying the Foundation for PPPs on August 3 at the Hotel Rus in Kyiv. The study was prepared by Professor Wolfgang Amann, an international consultant on infrastructure rehabilitation in the housing sector and social housing, with input from multiple local stakeholders.
Professor Amann traveled to Kyiv, Kharkiv, Odesa, and Dnipropetrovsk, where he collected data and held extensive discussions with local stakeholders, incluluding local governments, NGOs, construction and development companies, and donor organizations. At the event, he shared his key findings and specific recommendations for long-term IDP housing solutions with participants and presented private sector housing models targeting IDPs.
Professor Amann’s presentation was supplemented by comments and presentation of Natalia Dotsenko-Bilous, a Ukrainian lawyer who covered the legal aspects of PPP implementation in housing sector relevant to Ukraine.
The agenda, study and presentations by Professor Amann and Natalia Dotsenko-Bilous can be accessed at the links below:
How valuable are lessons of experience in PPPs from other countries? Legislative and regulatory environments differ, as do market conditions and the overall investment climate. So replicating a successful PPP in another country isn’t a simple as following the same steps or using similar contract or tender documents.
But that doesn’t mean lessons cannot be transferred. Even if conditions vary, the underlying principles of PPPs remain the same regardless of where it is executed. For example, a PPP is always a long-term contractual agreement between a government entity and a private company; it must be financially sound if it is to work; and risks must be identified, mitigated and allocated effectively. The details of how these principles are applied will vary depending on the regulatory and market conditions of each country. But the examples remain valid nonetheless.
In Ukraine, PPPs have been slow to catch on, initially because the business climate was so weak. The country’s neighbors were all more successful at implementing PPPs: Poland has 65 PPP project underway according to the Ministry of Economy’s PPP database, and Moldova’s first PPP established a radiology and diagnostic imaging center. But none of Ukraine’s neighbors have done as well with PPPs as its Black Sea neighbor, Turkey.
P3DP presented an overview of PPP environment in Ukraine during an International Chamber of Commerce regional round table in Odesa. ICC recently established a PPP Commission designed to provide technical and political support for PPP projects initiated by their members. Recent initiatives address improvement of port facilities and establishment of technology parks with private sector participation.
P3DP participated in the Q&A session organized by the EBA with Ukraine’s Minister of Infrastructure. The Minister stressed the importance of rehabilitating key ports and improving commercial access to the system of waterways. Restructuring of the State Road Agency was also cited as a priority step toward improving infrastructure needed for economic development.
P3DP participated in the IDP Shelter “Cluster” meeting organized by the Coordinating Humanitarian Center under the UN Refugee Agency. While the Cluster’s activities focus on short-term immediate needs, P3DP highlighted the importance to begin longer term planning. Participants agreed that a technical committee should be organized to develop a strategy to create a longer term framework that engages the private sector to rehabilitate or build, maintain, and manage housing facilities. P3DP plans to field experts with experience and expertise in the sector.
Interest in e-Government has been growing in Ukraine as national, regional and municipal governments seek better ways to deliver government services. The e-Governance model, however, requires financing, new technology, and both technical and management skills. Not all government bodies have the tools and capabilities to implement e-Government on their own.
One solution is for the private sector to develop and provide these services in partnership with government through public-private partnerships (PPPs). A well-structured PPP transaction can lead to a win-win solution whereby the private sector finances and operates an e-Government system under a long-term agreement. Government provides oversight to ensure effective delivery of services. The public benefits by having more constructive and transparent engagement with the public sector and receiving higher quality services.
In February 2015, USAID’s Public-Private Partnership Development Program (P3DP) partnered with Ukraine’s State Agency on e-Government to introduce concepts and methods in how to engage the private sector to improve public services through e-Government. On the first day, P3DP’s e-Government expert, Emilio Bugli Innocenti, explained how PPP mechanisms and approaches could be applied to e-Government in Ukraine, providing examples from other countries in Central and Eastern Europe. This was followed by a two-day practical workshop for government representatives from the national, regional and municipal agencies tasked with introducing various e-Government services in Ukraine. They learned about best practices of other countries to attract the private sector, improve effectiveness and efficiency of services, and introduce new levels of government transparency.
The PPP in e-Government Guide, which provides an overview and rationale of e-Government, information about the role and function of PPPs in e-Government, and cases studies, was disseminated at the workshop. It can be downloaded here in English and Ukrainian.
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.
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 22 July 2014, the MFSI-II Project took part in the Public Private Partnership Development – New Opportunities for Economic Development roundtable discussion. The roundtable was hosted by the USAID-funded Public Private Partnership Development Program (P3DP) and the Verkhovna Rada Committee on Entrepreneurship, Regulatory, and Antimonopoly Policies.
Read the full post on IBSER’s website.