Ukrainian Association of PPP Trainers and Consultants to be Established

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.

Sharing PPP Knowledge: PPP Training-of-Trainers Course Launched

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

 

Learning from Turkey’s PPP Experience

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Study tours are an excellent tool for sharing best practices in public-private partnerships (PPPs):  participants have the opportunity to talk to people who have faced similar challenges and can see the results with their own eyes.

As part of its objective to improve PPP Support Services of the MOEDT and other government agencies, P3DP sent a delegation of 15 officials to Turkey on a five-day study tour to learn about that country’s experiences with PPPs. The study tour was designed to develop their capacity to formulate effective PPP policies, evaluate proposed PPP projects, promote PPPs and support municipalities in their efforts to develop and implement PPPs.

In contrast to Ukraine, Turkey has used PPPs for decades for infrastructure and public services. The World Bank reports that in 2013, private participation in infrastructure in Turkey increased dramatically to $16.8 billion, by far the largest volume in the Eastern Europe/Central Asia region. There is much to be learned from their experience.

Participants included Roman Kachur, Deputy Minister of the MOEDT who is responsible for PPP policy at the ministerial level; the PPP Unit’s Pavlo Pakholko, Deputy Head of the MOEDT’s Department of Investments, Innovations and PPPs, two representatives from the National Projects Agency, and multiple municipal representatives from Donetsk, Luhansk, Kharkiv, Odesa and Ivano-Frankivsk regions.

During the tour, participants met representatives from government, the private sector, and developmental agencies involved in PPPs, including international development institutions; officials from the Turkish ministries of Development, Transportation, Maritime Affairs, Communications, Health, and the Turkish Investment Support and Promotion Agency; the Istanbul Development Agency and the Ankara Metropolitan Municipality. They also visited several industrial parks being operated under PPPs.

A follow-on event will take place in Kyiv focused on stimulating investment in Ukraine for the study tour participants and other interested stakeholder groups. It will continue the discussion about the approaches used by Turkey to attract investment and apply resulting experience to develop PPP projects in Ukraine, especially in healthcare, solid waste management, energy efficiency, infrastructure development, and industrial park management.

Malyn on Track with Ukraine’s First Energy Efficiency PPP

Malyn city officials are on track for launching Ukraine’s first energy efficiency Public Private Partnership, expected to save nearly 250,000 cubic meters of gas, cut energy costs by approximately 10 percent, and reduce carbon emissions by over 11,000 tons. More than 1,600 students and teachers will benefit from more reliable and efficient heating.                  

Malyn, a city of 27,000 in Zhytomyr Region, submitted a PPP feasibility study and appraisal to the National PPP Unit within the Ministry of Economic Development and Trade earlier this week, demonstrating how private sector participation in the energy sector can make cities more resilient to budget constraints while making Ukraine more energy independent. The tender is expected to take place later this year.

The project envisions using a renewable biofuel, straw pellets, in place of natural gas. USAID’s Public Private Partnership Development Project structured the transaction, brokered negotiations between government and the private sector, and drafted the PPP contract and tender documents. The project, if successful, will also demonstrate both the feasibility of using biofuel and engaging the private sector in solving Ukraine’s pressing energy challenges.

Example of straw pellet boiler in Poland:

Ukraine, an agricultural powerhouse, has an abundant supply of the raw material, a by-product of grain crops. Today, much of this is wasted. By converting the straw into concentrated pellets and burning them as fuel, Ukraine can reduce its dependence on gas imports. An additional bonus is that they do not contribute to greenhouse gas emissions, as carbon released from burning equals the carbon absorbed by crops as they grow. Fossil fuels, however, release carbon that was captured millions of years ago.

With budgets under pressure across the country, Ukraine needs to explore alternative fuel sources. Taking advantage of this renewable biofuel could make Ukrainian cities more resilient and energy independent, and save them cash in the process. A successful biomas PPP in Malyn could show the way forward.