The Verkhovna Rada adopted Regulation #2986 On the Plan for Legislative Support to Reforms in Ukraine. The plan was developed by 90 members of parliament with assistance of the international donor community, including active support from P3DP. The regulation facilitates implementation of the National Strategy 2020, the EU Association Agreement and Coalition Agreement.
Reforms approved by the Rada increase investment attractiveness of alternative energy projects. Draft law #2010-d better aligns green tariff rates with European practices and loosens requirements to use Ukrainian-produced equipment. The amendments support municipalities’ efforts to attract private sector investment needed for replication of P3DP’s alternative energy PPP pilot project in Malyn.
Legislation increasing the viability of Energy Performance Contracts, including necessary budget code amendments, was enacted. P3DP provided significant input to the development and advocacy for the adoption of the reforms. The introduced legislation provides incentives for private sector investment and public-private partnerships in energy sector modernization.
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.
P3DP participated in working group meeting of the Parliamentary Committee on Industrial Policy and Entrepreneurship’s regarding the draft law On Amendments to the PPP Law. Many of P3DP’s recommendations that would closer align the draft law to international best practices were considered. It is expected the final draft law will pass Committee hearings by the end of April and be registered for a vote in the Parliament during May.
The Verkhovna Rada passed in the first reading the Draft Law On Amending Some Legislative Acts of Ukraine in Order to Eliminate Regulatory Barriers to Public-Private Partnership Development in Ukraine and Encourage Investment (#1058). P3DP led the drafting of the legislation and will continue working with the Parliamentary Committee as it collects additional feedback from stakeholders and, if necessary, revise the draft prior to the final reading and adoption vote in March.
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.
P3DP provided recommendations on solid waste tariff issues during a working group meeting held by the Ministry of Regional Development. P3DP was a primary contributor to the proposed solid waste tariff methodology which is expected to make PPPs more attractive in the solid waste sector. The draft law shifts greater authority and delegates tariff setting responsibilities for SWM to municipalities. It is expected to be submitted to Parliament in the near future.
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.
Proposed changes in the required PPP risk assessment methodology was finalized by P3DP and submitted to MOEDT for review and approval.
The document outlines specific improvements that are needed to Cabinet of Ministers Resolution #232: On Assessment of PPP Project Risks and Projects’ Approval.
The current resolution neither clarifies nor facilitates the process of legal and financial risk evaluation of proposed PPPs. Examples of problems include:
- Uncertainties about when and what part of a project requires risk assessment prior to final approval;
- Numerous mistakes in formulas presented in the document; and,
- Adherence to theoretical research evaluation methods as opposed to practical “on-the-ground” projects.
When adopted, the new methodology will be based on widely used risk assessment methods used in project evaluation. It is not only simple and clear, but illustrates a connection between the risk assessment figures and the data required for the feasibility study
P3DP has experienced numerous difficulties while assisting municipalities of Malyn, Vinnytsia and Simferopol in preparation of PPP projects. We are confident the new risk assessment methodology will enable a more effective and time-efficient process for PPP project approval.