The Committee of Verkhovna Rada on Industrial and Regulatory Policy and Entrepreneurship hopes that the Law “On public-private partnership” will pass its second reading in the Parliament next plenary week.
We (the Committee –IF) will do our best to make the Bill go before the parliament next plenary week” stated the Head of the Committee Nataliya Korolevskaya during the press conference in Interfax Ukraine Agency on Thursday.

She noted that there is little chance that the bill will pass its second reading.

Senior Project Manager of the Foundation for Effective Governance Andrey Lobach, who participated in development of the document together with the parliamentary committee, believes that enactment of the law will contribute to favorable investment climate in the country during the economic recession.

“The law on public-private partnership is extremely important for Ukraine as a whole, especially during the recession. This is the reason why the Foundation cooperates with the Rada Committee and the Ministry of Economics: it wants to help develop the draft law. This is an important element of the investment climate, which is strategically important at the time when the investment flow in Ukraine is negligible, to say the least”, said A. Lobach.

According to the draft law, which passed its first reading in the Verkhovna Rada, public-private partnership can be applied in such areas as raw materials exploration and mining, gas and heat supply networks, road utilities, rail, water and air travelling including their infrastructure elements, heavy engineering, water supply, water discharge, reclamation systems, healthcare infrastructure, tourism and recreation, treatment facilities and waste processing. It is not an “exhaustive” list of areas.
At the same time PPP cannot be applied in such economic areas of activity, which are in the exclusive authority of state-run companies, departments and organizations.

According to the draft law transfer of state or communal facilities to a private partner for execution of the agreement for public-private partnership does not suggest transferring the right of ownership for the facilities to the private partner.
The right of ownership for the facilities, which were built, rebuilt or reconstructed within the framework of the public-private partnership, belongs exclusively to the state.

The document also identifies that PPP facilities cannot be the facilities, which are subject to privatization. In addition, PPP facilities cannot be privatized during the validity term of the agreement.

The form of PPP agreement is to be identified by the body, which makes the decision on its execution. In case of communal property facilities it is the local authorities and in case of state-run property it is the body authorized by the Cabinet of Ministers.

The state guarantees to the private partner reimbursement of “reasonable” expenses and allocation of a land plot for lease. It will also help him through all the related procedures and provide efficient tariff policy in regard to the object of the agreement.