The Verkhovna Rada simplified the mechanism for attracting private investment for the reconstruction of Ukraine

The Verkhovna Rada of Ukraine approved draft law No. 7508 in the second reading, which significantly simplifies the participation of private business in the reconstruction of the country through the public-private partnership (PPP) mechanism. The document solves several key issues at once: it reduces bureaucratic barriers, provides financial guarantees for investors and promotes faster implementation of projects, informs press service of the Ministry of Economy

“Public-private partnership is one of the key tools for attracting investments. Although the PPP concept has existed in Ukraine for a long time, we have concluded only two large concession contracts during all that time. Thanks to the changes to the legislation, we expect that the PPP mechanism will finally work and bring us up to 1 billion dollars of investments in specific projects in the coming years.

First of all, it can be the following areas: ports, hospitals, municipal facilities. In addition, the draft law envisages approximation of national legislation to EU legislation. I am grateful to the parliament for adopting this draft law.” — noted the First Deputy Prime Minister of Ukraine – Minister of Economy of Ukraine Yuliya Svyridenko.

The document introduces an electronic trading system for concessions according to EU standards, guarantees the protection of the rights of private partners and the stability of contract terms, and also provides for financial support from the state, international donors and through budgets. This should minimize risks for investors and make the implementation of infrastructure projects more affordable for local self-government bodies.

The project pays special attention to the implementation of a simplified procedure for the preparation of “small” projects worth up to 5.5 million euros and to the introduction of a special regime for the reconstruction of infrastructure destroyed by the war – valid during martial law and for seven years after its end. Thanks to this, the state will be able to pay for implemented infrastructure facilities after their commissioning, which will reduce the burden on the budget.

Also, the new law allows state-owned companies to be involved in PPPs, which will contribute to the attraction of additional investments, in particular in housing construction, taking into account the urgent need of the population for new housing. Analysts expect that thanks to electronicization, European standards and simplified procedures, the annual attraction of private funds will reach 8-10 billion hryvnias, provided that 5 projects are implemented per region worth from 50 to 100 million hryvnias each.