The Cabinet of Ministers of Ukraine approved the Procedure for Involving Advisors for the Preparation of a Project, which is implemented in the terms of a concession

On October 9, 2020, the Cabinet of Ministers of Ukraine by Resolution № 950 approved the Procedure for Involving Advisors for the Preparation of a Project, which is implemented in the terms of a concession.

According to Article 23 of the Law of Ukraine “On Concession”, the involvement of an advisor is mandatory if the value of the property that is the object of the concession (including the expected value of the newly created/newly built object) exceeds UAH 250 million.

The new approved procedure defines:

• mechanism for attracting advisors to provide project preparation services, which is implemented on a concession basis, on a competitive basis
• criteria for their selection
• payment mechanism for their services (payment of remuneration)

The selection of advisors is carried out using competitive procurement procedures by

• use of electronic procurement system by the Law of Ukraine “On Public Procurement”
• by negotiated procedure

Payment for the services of advisors can be made by:

• state and/or local budgets,
• funds of a state, municipal enterprise, institution, organization, business association, 100% of shares of which belong to the state, the Autonomous Republic of Crimea, territorial community or other business association, 100% of shares of which belong to the state, National Academy of Sciences, national industry academies of sciences,
• international financial institutions funds or other sources not prohibited by law.

The total remuneration amount within one project in total may not exceed 5% of the private partner/concessionaire investment.

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