Objective 1:

Improving the Legal and Institutional Framework for PPPs

VRP3DP contributed to the development of Ukraine’s legal and regulatory framework to make PPPs a viable tool for financing energy-efficient infrastructure, health, education, and public service projects. We provided legal analyses, participated in policy discussions, contributed to draft legislation,  and advocated for reform conducive to PPPs. We also supported PPP initiatives introduced in the Autonomous Republic of Crimea and local municipalities before it was occupied by the Russian Federation in February 2014. We also contributed to national policies, laws and decrees impacting PPPs.

P3DP was an active participant in working groups that addressed PPP development issues. Our work supported Ukraine’s efforts to combat corruption, mitigate climate change and preserve the environment, strengthen municipal sustainability, increase financial and environmental resilience in a difficult environment, while benefiting all Ukrainian citizens.

Improving the Legislative Framework for PPPs

Following extensive legislative analysis and discussion with stakeholders, P3DP drafted legislation and amendments to the PPP Law, the Concession Law, laws on solid waste management and energy efficiency, the Budget Code, and various decrees and orders affecting tenders, tariffs, and the PPP approval process. These contributed the the body of legislation affecting PPPs in Ukraine.

National PPP Policy

P3DP and the Ministry of Economic Development and Trade (MOEDT) developed a national PPP Development Concept, Strategy and Implementation Plan for Ukraine. A policy at the national level provides a critical base of support for both government and private sector stakeholders, makes Ukraine more resilient to pressures of corruption, and enables PPPs to support national efforts to mitigate climate change. The policy also supports Ukraine’s development goals as outlined in the National Action Plan of the Economic Reforms Program for 2010-2014. Key elements include the following:

  • Provides a uniform approach to PPP implementation that efficiently coordinates government, the private sector, civil society and experts;
  • Ensures that PPP development in Ukraine preserves its natural environment;
  • Introduces resource and energy efficiency improvements;
  • Enables the Ukrainian people to enjoy the benefits of better infrastructure and public services, thereby increasing the quality of the lives of ordinary citizens.

The PPP Development Concept was adopted by the Cabinet of Ministers in August 2014.

Budget Legislation to Promote Energy Efficiency

P3DP analysis and experience with pilot projects showed that a significant obstacle to implementing PPPs in Ukraine is budget legislation. Current legislation limits budget commitments to one year, making PPPs unfeasible.

In partnership with the Commission for Regulation of Communal Services and the  Institute of Budgetary and Socio-Economic Research (IBSER), P3DP:

  • Provided input to the draft law On Amendments to the Budget Code;
  • Proposed and advocated for amendments to budget laws to facilitate use of energy performance contracts. These will enhance the attractiveness of PPPs with energy service companies (ESCOs).

Solid Waste Management Tariff Methodology

P3DP proposed a draft methodology on calculating tariffs in solid waste management that increase incentives to invest in modern landfills. These were reviewed with the National Commission on Communal Services in November 2013. In addition to stimulating private sector investment, effective use of such economic instruments can encourage development of pollution control technology and provide sources of revenues to support waste management programs.

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