The Ministry of Infrastructure announced that the Soufflet Group, a leading player in global grain markets, will develop the SE Illichivsk Sea Commercial Port. An MOU was signed that outlined Soufflet’s intention to implement the infrastructure development project over the next few years. P3DP is supporting efforts to develop industrial parks and related infrastructure.
Ukraine’s Health Minister announced plans to introduce an electronic healthcare management system within one year. A single register with data on patients, doctors, and all clinics and emergency care hospitals is to be created. In addition to national agencies, municipal governments are looking for ways to overcome budget constraints to introduce e-Government programs that improve citizen services.
Ukraine’s Prime Minister announced preparation of a plan on privatization, fiscal reform and restructuring of the energy sector. He underscored that the plan will emphasize transparent, fair and open tender competitions to increase foreign investment in strategic infrastructure and the economy. The plan will be presented at an international business conference on July 13 in the USA.
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.
The European Investment Bank (EIB) approved €8 billion in financing for energy and infrastructure projects in Europe. The EIB has a €3 billion lending program to Ukraine for 2014-16, with disbursements to date of less than €940 million. Properly prepared public-private partnership projects can apply for the support.
In an effort to improve effectiveness and efficiency of the Government, the Cabinet of Ministers of Ukraine has dissolved the State Agency for Investment and National Projects, as well as other agencies and departments. Programs and services deemed essential will be continued by the Ministry of Economic Development and Trade, P3DP’s primary beneficiary.
On February 13, P3DP’s COP Mick Mullay joined over 90 members of the business community to discuss implications of Ukraine’s poor ranking in the Heritage Foundation’s 2014 Index of Economic Freedom. Ukraine’s economic freedom score of 49.3 classifies it as a “repressed” economy, placing it in the bottom 15 percent of the almost 200 countries evaluated.
Ukraine’s ranking last out of 43 countries in Europe highlights how difficult progress is made. James Roberts, Research Fellow for the Heritage Foundation, noted the opaqueness of public procurement is one area needing significant reform. P3DP is working to improve procurement policies and practices of munipalities by introducing international PPP standards.