Ukraine Adopts PPP Policy

MOEDTThe Cabinet of Ministers of Ukraine approved a new policy on Public-Private Partnerships (PPPs) on August 14, 2013, sending a clear message that the Government is continuing serious efforts to improve the quality of infrastructure and public services by engaging the private sector. The adoption of the Concept of Public-Private Partnership Development in Ukraine for 2012 – 2017 is designed to unify efforts and guide actions needed to create new business opportunities to improve services in health, education, energy, solid waste management and other key sectors. This is the first major policy on PPPs adopted since the 2010 framework law, clearly supporting the Government of Ukraine’s economic reform program.

This new policy framework lays the groundwork for further PPP development in Ukraine by identifying current obstacles and defining the government’s role in addressing them, including:

  • Strengthening legislation and regulation affecting PPPs;
  • Improving the overall business climate;
  • Building institutional capacity; and
  • Developing a comprehensive strategy and implementation plan to accelerate the use of PPPs throughout the country.

The Ministry of Economic Development and Trade (MOEDT) received extensive assistance from the Public-Private Partnership Development Program (P3DP), funded by the United States Agency for International Development, during their work to develop the Concept. In addition to providing examples and advice based on international best practices, P3DP helped facilitate a participatory approach that engaged representatives of key stakeholder groups through seminars and roundtable discussions to ensure viewpoints of national and municipal governments, international financial institutions, NGOs, academia and the private sector were considered.

Details of government processes and institutional support for PPPs will be addressed in the PPP Strategy and Implementation Plan that is expected to be completed later this year. In the meantime, through formal adoption of this Concept, the Government of Ukraine has sent a positive signal to municipalities, oblasts and the private sector that it is actively working to create the environment needed for PPPs to become a viable tool for municipalities and agencies striving to improve services available to all Ukrainian citizens.