Category: News

The Ukrainian State Agency for Restoration and Development of Infrastructure presented its 2023 achievements and 2024 plans to international partners. The event featured the Head of the Restoration Agency, Mustafa-Masi Nayyem, alongside ambassadors and representatives from foreign embassies, international financial organizations, and global companies. Supported by the USAID/UKaid project “State-Owned Enterprise Reform Activity” (SOERA), the event highlighted Ukraine’s resilience and commitment to rebuilding its infrastructure.

Mustafa Nayyem, presenting the 2023 outcomes, stressed the Agency’s robust and capable nature, adept at implementing projects across housing, energy security, road infrastructure, and ensuring export, military, and humanitarian logistics. 

One of the Agency’s major 2023 initiatives was a three-tiered energy infrastructure protection system: using big bags and gabions to safeguard 103 facilities in 21 regions; drone and rocket defense for 22 substations, with 12 already secured; and a plan to protect additional substations by the end of 2024, contingent on continued funding. Mr Nayyem expressed gratitude to partners from the USA, Germany, the UK, and Japan for their cooperation in these endeavors.

Another significant project undertaken by the Agency is the construction of a main water pipeline to supply 1.5 million people with drinking water, following the destruction of the Kakhovka Hydroelectric Station by Russian forces. This project, which began in June 2023, spans 145 kilometers and involves the oversight of engineering consultants and independent technical supervision, supported by USAID ERA “Economic Support to Ukraine.” A comprehensive technical audit of project documentation will also be conducted with the assistance of USAID ERA, and all reports and audit results, along with estimates, will be made public after the assessment process.

The Restoration Agency places a significant focus on the reconstruction of social facilities. Currently, reconstruction efforts are underway in settlements affected by armed conflicts, including Borodyanka (Kyiv region), Yahidne (Chernihiv region), Trostianets (Sumy region), Tsyrkuny (Kharkiv region), and Posad-Pokrovske (Kherson region). In total, the Agency is reconstructing 352 facilities, including 292 residential buildings, 31 social infrastructure objects, 16 street and road infrastructure facilities, 8 administrative buildings, and 5 housing and communal services objects.

Between 2022 and 2023, the Agency successfully repaired 330 bridges, many of which are crucial for export logistics, transportation of military and humanitarian cargo, and the evacuation of the wounded.

Additionally, a significant aspect of the Agency’s work is the provision of military logistics and the reconstruction of territories that have been de-occupied. In 2023, over 1,200 kilometers of roads were cleared and 89 bridges that had been damaged due to combat actions were reconstructed. Czechia, the United States, France, Sweden, and Norway provided artificial bridges and structures.

Following the onset of full-scale warfare, 70% of exports are transported by road. To enhance export routes, the Agency has already taken control of 23 border-crossing checkpoints on the western and southern borders, with an additional 6 checkpoints in the process of transfer. Repair work has commenced on 11 of these checkpoints.

Nayyem highlighted reforms to reduce procurement abuses, increase transparency, and prevent corruption, including adopting unified civil construction procurement methodologies and CIPS certification. The Agency received the Prozorro Awards for transparent procurement approaches and signed a memorandum with NABU to combat criminal corruption.

The Agency administers nationwide digital systems developed with international support, like DREAM – Digital Restoration Ecosystem for Accountable Management, E-queue – an electronic border crossing system, and GIS RR – a regional development geoinformation system.

Mr Nayyem underscored the need to transform the Agency, including creating a centralized procurement organization (CPO) to increase efficiency, transparency, accountability, and public and international procurement expertise. The CPO will also centralize price monitoring and competitive salaries.

In conclusion, Mr. Nayyem thanked Deputy Prime Minister for Restoration of Ukraine Oleksandr Kubrakov, and international partners for their comprehensive support and looked forward to continued successful collaboration.

Türkiye and Ukraine have signed a document to set up the Turkish-Ukrainian Reconstruction Task Force that will allow Turkish companies to take part in the infrastructure projects in Ukraine.

The deal was inked during the forum on the reconstruction of Ukraine, organized in Istanbul on Jan. 31.

Trade Minister Ömer Bolat, Transport and Infrastructure Minister Abdulkadir Uraloğlu, and Ukrainian Vice Prime Minister for Restoration Oleksandr Kubrakov attended the event.

At the forum, they discussed the role Türkiye will undertake in the reconstruction of Ukraine with the participation of public and private institutions from both countries, Bolat wrote on X.

“We established the ‘Task Force’ to evaluate projects in Ukraine and mutually address financing conditions and other processes on this platform. We believe that this agreement will contribute to further strengthening the strategic relations between Türkiye and Ukraine,” he said.

Turkish officials will travel to Ukraine together with Turkish contractors in the coming months, and the first meeting of the task force will take place in Ukraine, Bolat noted.

Ukraine and Türkiye started a new path of cooperation by signing terms of reference for the Reconstruction Task Force, Kubrakov said.

“Together with Bolat, we established a platform for determining cooperation areas and the infrastructure projects for the recovery of Ukraine for sharing experiences and realization projects of infrastructure reconstruction.”

It is mainly related to projects for the restoration and development of water transport infrastructure and the reconstruction of roads, the building of temporary bridges and overpasses to secure transportation on the key routes, Kubrakov said.

Bolat also said that the Türkiye-Ukraine Free Trade Agreement will enter into force after the official approval procedures are completed in the coming months.

Source: https://www.hurriyetdailynews.com/turkiye-ukraine-set-up-reconstruction-task-force-190281

До України з візитом прибув голова Міністерства закордонних справ Данії Ларс Люкке Расмуссен. Анонсував фінансову підтримку для боротьби з корупцією в країні.

Про це повідомляє РБК-Україна з посиланням на пресслужбу Міністерства закордонних справ Данії.

Як нагадує МЗС, Данія з 2016 року очолює антикорупційну програму ЄС в Україні (EUACI). Під час сьогоднішнього візиту Расмуссен оголосив про підтримку третього етапу програми.

“Ще до незаконного вторгнення Росії Україна досягла значного прогресу в боротьбі з корупцією, і навіть під час війни в країні вдалося продовжити позитивний розвиток. Але є ще сфери для вдосконалення, і для мрій України про ЄС дуже важливо, щоб ми допомогли їй досягти своїх цілей”, – заявив міністр.

Зазначається, що Європейський союз виділяє більше 70 мільйонів данських крон (10,21 млн доларів) на наступний етап програми, а Данія, зі свого боку, трохи менше 60 млн (8,75 млн доларів).

“Серед іншого, програма зосереджена на сприянні прозорості та доброчесності у відновленні Миколаєва через тісну співпрацю з міським головою та його командою”, – пише пресслужба.

Зокрема планується розробити найкращі практики щодо реконструкції Миколаєва, які, в майбутньому, можуть бути використані й в інших містах України.

Зустріч з Кулебою й відкриття офісу посольства

Про програму Расмуссен проінформував українського колегу Дмитра Кулебу. Міністри зустрілись в Миколаєві, щоб офіційно відкрити новий офіс посольства Данії.

Зокрема вони обговорили, як Данія та Україна можуть надалі розвивати співпрацю щодо Миколаєва і як Копенгаген може продовжувати підтримувати Київ у боротьбі з російською агресією.

“Україна все ще бореться за свободу і безпеку всієї Європи. Ми повинні підтримати її в цьому, саме тому ми є однією з країн, які надають найбільшу підтримку Україні порівняно з нашими розмірами. Ми несемо особливу відповідальність за відбудову Миколаєва, і з відкриттям посольського офісу в місті ми можемо зробити зусилля з відбудови більш ефективними”, – заявив голова МЗС Данії.

Допомога Данії для України

Копенгаген уже надав українській стороні після широкомасштабного вторгнення Росії оборонну допомогу на суму близько 2,8 мільярда євро. Зокрема передав також гуманітарну допомогу на 378 мільйонів євро.

Нещодавно уряд Данії вирішив надати Україні новий пакет підтримки на загальну суму 1 мільярд євро, а також 13,3 млн доларів на проєкти з підтримки розвитку кібербезпеки.

Джерело – https://www.rbc.ua/rus/news/volini-viyavili-pidpilniy-tseh-obrobki-burshtinu-1706275550.html

The head of the Ministry of Foreign Affairs of Denmark, Lars Løkke Rasmussen, has arrived in Ukraine on a visit. He announced financial support for the fight against corruption in the country, according to the press service of the Ministry of Foreign Affairs of Denmark.

The Ministry of Foreign Affairs reminds that Denmark has been leading the EU Anti-Corruption Initiative (EUACI) in Ukraine since 2016. During today’s visit, Rasmussen announced support for the third stage of the program.

“Even before the illegal invasion by Russia, Ukraine achieved significant progress in combating corruption, and even during the war in the country, positive development was successfully continued. However, there are still areas for improvement, and for Ukraine’s aspirations towards the EU, it is crucial that we help them achieve their goals,” the minister stated.

It is noted that the European Union allocates more than 70 million Danish crowns (10.21 million dollars) for the next stage of the program, and Denmark, in turn, contributes slightly less – 60 million crowns (8.75 million dollars).

“Among other things, the program focuses on promoting transparency and integrity in the reconstruction of Mykolaiv through close cooperation with the mayor and his team,” the press service writes.

In particular, the plan is to develop best practices for the reconstruction of Mykolaiv, which can be used in the future in other cities in Ukraine.

Meeting with Kuleba and embassy office opening

Rasmussen informed his Ukrainian counterpart, Dmytro Kuleba, about the program. The ministers met in Mykolaiv to officially open the new embassy office of Denmark.

They discussed how Denmark and Ukraine can further develop cooperation regarding Mykolaiv and how Copenhagen can continue to support Kyiv in the fight against Russian aggression.

“Ukraine is still fighting for the freedom and security of all of Europe. We must support it in this, which is why we are one of the countries providing the most support to Ukraine given our size. We bear a special responsibility for the reconstruction of Mykolaiv, and with the opening of the embassy office in the city, we can make reconstruction efforts more effective,” said the head of the Danish Ministry of Foreign Affairs.

Denmark’s assistance to Ukraine

Copenhagen has already provided Ukraine with defense assistance of around 2.8 billion euros after Russia’s large-scale invasion. It also delivered humanitarian aid worth 378 million euros.

Recently, the Danish government decided to provide Ukraine with a new support package totaling 1 billion euros and an additional 13.3 million dollars for cybersecurity development projects.

Source – https://newsukraine.rbc.ua/news/ukraine-seeks-to-get-china-on-its-side-xi-1706279107.html

By the results of the meeting of the Committee of the European Business Association on the restoration of Ukraine with the deputy head of the ECA (Export Credit Agency of Ukraine) Oksana Ocheretyana (January 25, 2023). 

From January 1, 2024, the Law of Ukraine No. 3497-IX (22.11.2023) (On Amendments to the Law of Ukraine “On Financial Mechanisms for Stimulating Export Activity” regarding the insurance of investments in Ukraine against war risks) entered into force, hereinafter referred to as the Law. 

The ultimate goal of the Law is to regulate insurance and reinsurance by the Export Credit Agency of Ukraine (ECA):  

1. export loans, as well as insurance and reinsurance against war and/or political risks of loans of Ukrainian companies related to investments in facilities and infrastructure for processing industry and the export of goods (works, services) of Ukrainian origin. 

2. direct investments from/to Ukraine against war and/or political risks.  

The deputy head of EKA, Ms. Oksana Ocheretyana, provided an approximate list that can be approved by the Cabinet of Ministers of Ukraine. For example, war risks: occupation, hostilities, annexation, bombing, etc. Political risks: expropriation, nationalization, forced alienation, moratoriums, bans, etc.  

There is hope that the Law can really start working in 5-6 months (June-July 2024). Firstly, the Cabinet of Ministers of Ukraine has to determine the list of war and political risks, as well as the conditions and procedure for insurance (reinsurance) of such risks (agreed by the National Bank of Ukraine) until the end of March 2024. And then the Ministry of Economy, ECA and other ministries must bring their regulatory acts into compliance with the Law (we hope that it will take no more than 2-3 months).   

One of the problematic issues that must be resolved by state bodies is that ECA is limited in providing insurance guarantees with its own capital, which currently is about UAH 2 billion and from which insurance guarantees for about UAH 700 million have already been provided. The Ministry of Economy should solve this issue either by recapitalization, or by selling shares (up to 49%), or raising capital in another way.  

Interlegal Law firm will carefully monitor and inform our clients about further steps taken by the state in the implementation of this Law, very important both from the point of view of attracting investments and from the positions of strengthening Ukraine’s export opportunities.  

If you have questions for both our lawyers and/or the management of the Export Credit Agency of Ukraine (ECA), please, do not hesitate to contact us.

Denys Stadnichenko, business development manager at Interlegal

1. FIRST INSURANCE AGAINST WAR RISKS FOR PRIVATE INVESTORS IN UKRAINE

In 2023 (September) the World Bank’s MIGA (International Investment Guarantee Agency of the World Bank) provided the first investment guarantee for private investors of Ukraine against war risks. Insurance in the amount of up to $9.1 million was provided for the M10 Industrial Park project in Lviv. The guarantee is provided for financing the construction and operation of the warehouse complex and related infrastructure in the M10 industrial park. The insurance covers military risks for 10 years.

The MIGA guarantee gives an important signal to international investors regarding the activation of war risk insurance in Ukraine. “Many Ukrainian and foreign companies will be able to apply and receive new guarantees” commented Economy Minister Yulia Svyridenko.

So, the first insurance for private sector and for an Industrial Park. Why?

2. INDUSTRIAL PARK IN UKRAINE. WHAT IS IT? INCENTIVES

Industrial Park (IP) in Ukraine is the registered in the State IP Register special industrial zone (from 10 till 1000 hectares) with state and local authorities’ incentives, provided by the law, such as:

• Exemption from import VAT and customs duties when importing new equipment into Ukraine;
• Exemption from income tax for 10 years in case of activity within the IP;
• Exemption from property tax and minimum land charges from local authorities;
• Compensation for connecting to engineering facilities;
• Compensation of interests for the loans, obtained for arranging the IP*

*Some of the aforementioned incentives have their implementing peculiarities, which must be discussed in each certain case and are not the subject of the present Article.

Economists have calculated that due to these incentives, if you build the plant in Ukraine, about 25% of the investment can be saved on the construction on the territory of the industrial park. That is, a quarter of the investment compared to building the plant in Ukraine on a normal land plot not in an industrial park. Not to mention the neighbouring EU countries, where the amount of investment will be 30-40% higher due to the cost of works and materials.

Besides the economic incentives, the IP can serve for:

1. Investment subsidies. Investors in IP might be eligible for various investment subsidies or grants to support their capital expenditure.
2. Transportation Infrastructure. Improved transportation infrastructure, including roads and logistics, may be a focus to enhance connectivity.
3. Educational and Research Collaboration. R&D Collaborations. IPs may be encouraged to collaborate with educational and research institutions, fostering innovation and technology transfer.
4. Customized Support Programs. Industry-Specific Support. Some IPs may receive additional support tailored to the specific industries they host.

It is obvious that the location of production in industrial parks near the borders with the European Union countries will give advantages both to the owners and at the state level – export-oriented enterprises will appear competitive in our country.

Shared infrastructure and industrial networking are what help businesses grow if they are located in an industrial park.

3.“BOOM” OF SETTING UP INDUSTRIAL PARKS IN UKRAINE?

Yes, comparing to the other years the answer is affirmative.  And this trend has been continuing. Formally, the main thing is how many plants will be eventually constructed and what amount of investment is involved. Nevertheless, there is a belief that in the future, a critical number of industrial parks will lead to increased competition between communities for investments. The most progressive community leaders are already returning from abroad with prior agreements with investors who have experience in developing private equity in their countries.

Here are just several examples of recent developments on Industrial parks:

• The Mykolaiv City Council has begun developing the concept of a new industrial park. On a plot of 190 hectares between the Kherson and Bashtan highways, it is planned to attract investments in a dry port and a logistics center, production in the field of shipbuilding, electronics and light industry, premises for the processing and storage of fruits and vegetables, a customs terminal and a waste processing plant. It is planned to place solar panels with a total capacity of 100 megawatts on the roofs of all premises.
• Bucha Mayor’s Office of the Kyiv region announced plans to create the Bucha Techno Garden industrial park together with the Korean state company K-water. This company has experience in building industrial parks in South Korea.
• The Nedoboiv community of Chernivtsi region has started developing the concept of an industrial park. It is planned to create 500 jobs. The industrial park will be built on the territory of the former sugar factory in the village of Zarozhany on the territory of 25 hectares. Processing industry and the creation of a digital town for the IT sector were chosen as the main direction.
• The Municipality of Brovary allocated a plot of land with an area of 15.4 hectares for a new industrial park. The profile commission of the city council approved the technical documentation on land management.
• Mayor of Lviv Andriy Sadovy announced his intention to build a powerful industrial park in the city for South Korean investments in industrial production.
• In the Lviv region, Novorozdilskyi Industrial Park announced that the Center for Investment and Industrial Development consortium had acquired the status of a management company. The park is located on a plot of 46.4 hectares on the border with Poland. 200 m from the border there are 2 transformer substations of 20 and 6.3 MW.
• Construction of the road to the future industrial park has started in Khmelnytskyi.
• Work has begun on the preparation of the site for the industrial park “Vugletsevo neutral eco-agro-hub “Podillia-Horodok”. In the industrial park, it is planned to create a plant for the production of unrefined and purified medical alcohol from corn, a plant for the production of oils, as well as a waste processing plant.
• Building materials group Kingspan says it is moving ahead with plans to build a new €280 million manufacturing facility in Ukraine. It is the biggest manufacturing investment yet promised to Ukraine.
  
  4. THINK OF SETTING UP AN INDUSTRIAL PARK IN UKRAINE?

The period of time, required for the preparatory works (from the idea and via feasibility study, searching of the location and proper land plot, negotiations with state and local authorities, financial and insurance institutions, etc. to the working out of IP concept and registration of IP) can take from 6 months to 1,5 years. So, in case of having interest to IP, the certain actions have to be started beforehand and taking into consideration increasing competition, in the nearest future. As far as a lot of procedures and incentives depend on local authorities, they could hardly bear a lot of supportive investment obligations to many Industrial parks within their territories. 

Having our wide and deep experience in legal support to different businesses in Ukraine, cooperation with international and local institutions assisting foreign investors in Ukraine, network of partners in different places in Ukraine and our reliable reputation; the Law Firm “Interlegal” is always ready to help you with your fair business in Ukraine and, in particular, to give you all the required legal assistance in preparatory works and final registration of your Industrial Park in Ukraine.

Stadnichenko Denys

Business Development Manager at Interlegal Law Firm     

References:

https://me.gov.ua/News/Detail?lang=uk-UA&id=f135e7b2-f070-4b6f-9418-5b9dd0945ad7&title=MigaInvestitsii

https://dailylviv.com/news/ekonomika/koreitsi-zbuduyut-u-lvovi-potuzhnyi-industrialnyi-park-dlya-svoho-biznesu-sadovyi-117655

16.5 million tons of cargo have been delivered to global markets

CTS notes, 515 vessels have already left Ukrainian sea ports from the commencement of Black Sea Corridor functioning, as reported by Bridget A. Brink, the US Ambassador to Ukraine.

16.5 million tons of cargo have been exported to global markets.

Mrs. Brink notes, “As of January 17, 2024, 515 vessels have passed Black Sea Humanitarian Corridor and have delivered 16.5 million tons of grain and other cargos to global markets. This is the great achievement – to help business and employees and to give a chance for growth of the Ukrainian economy, despite terrible war outbroken by the Russian federation”.

Starting from August and till the end of December 2023, nearly 13 million tons of products have been exported to 24 countries through the Ukrainian temporary sea corridor.

Dmytro Ochkolias, associate attorney, advocate at Interlegal:

In view of intensive hostilities and obstacles caused by martial law, the most vital issue concerns renewal and functioning of the Ukrainian infrastructure. In accordance with national and international law, the state is entitled to take measures aimed to defend its interests and to secure national infrastructure safety. Therefore, the Black Sea Humanitarian Corridors is a crucial step aimed to facilitate safe and effective vessel traffic and cargo delivery through the Black Sea.

However, the state of war may also cause serious risks for investments and business activities. In this context, the current and adopted governmental guarantees regarding loss of investments may serve as an important tool aimed to encourage investors under indefinite conditions and war risks.

As of a certain legal support for port and adjacent infrastructure projects, that is quite a reasonable solution to apply to Interlegal law firm. Interlegal has vast experience in shipping & maritime law, being competent in settlement of issues related to port infrastructure functioning.In general, risk management, adoption of governmental guarantees and legal advice – that’s what may help business entities and investors to get adapted to complicated conditions of martial law and to keep economy stable.

Source – https://cfts.org.ua/news/2024/01/18/cherez_ukranskiy_koridor_u_chornomu_mori_proyshli_vzhe_515_suden_77878

The President’s Office states that the bank can be ready for launch in five-six months

Kyiv involved in creation of the Bank for Reconstruction of Ukraine the largest investment companies, such as BlackRock and JPMorgan Chase. Reuters writes that the bank may be ready for launch within a year, while its capital will make up ca. 1 billion USD.

BlackRock Vice Chairman Philip Hildebrand said that the company helped Ukraine in negotiations to find funds from development banks or major donor countries in order to reduce risks for private investments.

BlackRock is an international investment company headquartered in New York, USA, one of the largest investment companies worldwide and the largest in terms of assets under management.

JPMorgan Chase is the largest US bank holding by assets. It is included in Big Four of the largest US banks. It carries out activities upon investments, financial services, private capital management.

Hildebrand says, “We want to be ready to deploy at least with soft commitments from donor countries”.

He notes, in order to mobilize BlackRock assets consisting of pension funds, it will be necessary to reduce the risk up to the level of the Organization for Economic Cooperation and Development (OECD).

Hildebrand explains. “This money cannot be invested in very high-risk businesses”.

Rostislav Shurma, Deputy Head of the President’s Office, believes that the bank may be ready for launch just in five or six months.

Shurma notes, “We have at least 500 million USD in allocated capital; I think it will make up ca. 1 billion USD of liabilities”.

He adds also, among nearly 280 projects that applied to the fund, BlackRock and JPMorgan identified 25-30 projects as worthy of serious consideration.

Penny Pritzker, the US Special Representative for Ukraine’s Economic Recovery, who attended a meeting with Ukrainian President Volodymyr Zelenskyi in Davos, said there are still many questions concerning “what is possible today and what is definitely possible in the post-war period”. Mrs. Pritzker especially highlighted the fund created by JPMorgan and BlackRock. They indicated they had “early interest from some forward-thinking investors who may be willing to take on more risk than, say, a pension fund,” she said.

Earlier, President Volodymyr Zelenskyi held a meeting in Davos with the largest financial funds worldwide, including JPMorgan CEO Jamie Dimon and other senior JPMorgan executives, BlackRock top management, Bridgewater Associates, Carlyle Group, Blackstone, Dell and ArcelorMittal executives.

President expressed hope that global financial funds will help attract a large number of global investors and corporations to the Ukrainian economy.

Zelenskyi said, “This is where we see your direct role right now. I know you are actively cooperating with our team. I am looking forward to a certain result”.

In November 2022, the Ministry of Economy signed a memorandum with BlackRock on creation of a special platform to attract private capital for reconstruction of Ukraine.

Ministry of Economy assesses investments in the amount of 70-80 billion USD per year that Ukraine needs for the economic miracle.

Source – https://finance.liga.net/ua/bank/novosti/ukraina-planuie-stvoryty-bank-rekonstruktsii-z-blackrock-ta-jp-morgan-ta-kapitalom-1-mlrd

Ukraine is actively gearing up for the imminent post-war reconstruction, a major undertaking to restore the infrastructure destroyed by hostilities. An integral aspect of the preparatory measures involves enhancing the legal framework to establish favourable conditions for attracting private investments into the extensive reconstruction.

The government has consistently voiced its commitment to ramping up efforts in the realm of public-private partnerships (PPP), recognizing this collaborative approach as an effective tool in the post-war reconstruction process. Notably, there are imminent expectations for the Parliament’s adoption of Draft Law No. 7508 to simplify and enhance the PPP procedures. It is anticipated that the following changes will be adopted in the regulation of PPP:

1. New forms of financing

The government acknowledges that a significant portion of PPP projects will be implemented with funding from foreign partners. Therefore, it proposes to introduce the concept of a donor into legislation – an entity providing a grant either directly to the private partner or through the state and local budgets of the government partner. Donors may include the EU, foreign states, international organizations, foreign municipalities, and other institutions and organizations.

2. New forms of state support for PPP

Anticipated legislative amendments include a comprehensive review and expansion of the range of state support mechanisms available for PPP projects. In addition, the draft law proposes to enhance the support mechanism pursuant to which the public partner would be able to provide backing to the private partner through the assurance of payment for goods or services essential for project execution. This support will serve to offset the disparity between the projected and actual levels of demand for the goods or services.

3. Simplification and streamlining of PPP project preparation procedures 

A pivotal innovation eagerly anticipated within the framework of this PPP reform is the introduction of the concept of a “small” PPP project, which is set to undergo a simplified preparation procedure. It is planned that a project will be considered “small” if its expected value is less than the equivalent of EUR 5,382,000.

The simplification entails the elimination of the requirement for the preparation of technical and economic justification for projects, as well as a reduction in the decision-making period for implementing PPP and preparing for the tender. In such cases, the decision to proceed with the PPP will be made based solely on the preparation and detailed analysis of the conceptual note.

4. Infrastructure and economic recovery projects

The proposed legislation outlines a specialized procedure for the preparation, selection, and conduct of tender to identify a private partner for the construction or reconstruction of infrastructure that has been destroyed or damaged due to military aggression against Ukraine. These projects will be formulated and executed at the state and local levels.

The distinctive feature of this specialized procedure is that conceptual notes, technical and economic justifications, and efficiency analyses are not required. This approach aims to reduce the preparation time for PPPs by 10-12 months. Additionally, model sets of competition documentation, estimated budgets, and other templates will be prepared for such projects. This special procedure is planned for implementation only for a limited period – during the martial law and five years after its conclusion.

The purpose and rationale behind this special procedure are to streamline and expedite the mechanism for engaging private partners in the reconstruction of devastated infrastructure.

5. “Infrastructure on installments”

The reform drafters intend to enhance a form of PPP that relies on government payments to a private partner, essentially characterized as “infrastructure by installments,” to meet the needs of future post-war reconstruction. This collaborative approach has the potential to be highly effective and efficient.

6. Expansion of the list of public partners

The government aims to streamline the process of involving state-owned companies in PPP, thereby facilitating the attraction of additional private investments for infrastructure development.

7. Digital system for PPP

The introduction of a unified digital system for conducting tender to select private partners is envisaged. This system will enable the creation, posting, disclosure, and exchange of information and documents in electronic format, facilitating the entire tender process. Additionally, it will facilitate interaction with the digital project preparation and management platform.

The Ministry of Economy of Ukraine is already developing such an electronic system and plans to launch it in 2025.

The suggested legislative amendments establish favorable conditions for the efficient implementation of the PPP mechanism in the post-war reconstruction of Ukraine. Streamlined procedures for engaging private partners, novel forms of collaboration, and various types of guarantees indicate that PPPs can emerge as a robust tool for attracting investments in the rehabilitation of infrastructure devastated by war.
We are optimistic that the Parliament will expeditiously adopt Draft Law No. 7508, initiating the process of attracting investments into reconstruction process.

Source – https://www.asterslaw.com/press_center/legal_alerts/ukraine_plans_to_create_favourable_conditions_for_ppps_during_reconstruction/

Ukraine and Turkey will ratify the Free Trade Agreement (FTA) in the near future, and after the ratification procedure is completed, the document will enter into force in early 2024, the Economy Ministry said on Wednesday following a meeting between First Deputy Prime Minister and Economy Minister Yulia Svyrydenko and the new Turkish Ambassador Mustafa Levent Bilgen the day before.

“The free trade agreement will also simplify logistics issues, promote the development of Ukrainian business in wartime, and open new prospects in Ukraine for our partners from Turkey,” Svyrydenko was quoted as saying in a press release.

She added that a working group on grain will be set up to discuss global and bilateral trade in this market.

“Ukraine highly appreciates Turkey’s participation in protecting the grain export initiative, which is an important factor in ensuring global food security,” the First Deputy Prime Minister said.

It is noted that the parties are also ready for a constructive dialogue on expanding economic cooperation, in particular, the creation of joint projects in priority sectors of the economy. Strategically important sectors for restoring and attracting private investment are defense, agricultural production and processing, renewable energy, gas production and storage, green metallurgy, environmentally friendly transport, healthcare, and pharmaceuticals.

Svyrydenko added that Ukrainian entrepreneurs are ready to establish joint business with international partners, so the government is using every opportunity to attract additional resources, including for the post-war reconstruction of Ukraine.

“Humanitarian demining is another important area. We need heavy demining vehicles, training for sappers, everything that will help us clear our land as soon as possible. We are open for cooperation and encourage international business to enter Ukraine,” the First Deputy Prime Minister said.

As reported, following 12 rounds of negotiations and a series of expert consultations in 2011-2022, Prime Minister of Ukraine Denys Shmyhal and Turkish Trade Minister Mehmet Mush signed an FTA between the two countries in Kyiv on February 3, 2022. The document will enter into force after ratification by the parliaments of both countries and the exchange of instruments of ratification.