Today on the 20th of January the Cabinet of Ministers of Ukraine adopted the draft Law of Ukraine “On changes to the Budget Code of Ukraine on the settlement of budgetary relations during the implementation of contracts within the framework of public-private partnership, including concession”.
The importance of this draft law is in:
- the improvement of legal regulation,
- introduction of the appropriate budgetary mechanisms,
- ensuring the practical possibility of providing state support for the implementation of PPP in the forms provided by current legislation.
For a number of promising projects that are planned to be implemented on the terms of PPP, especially in the social, transport, energy, housing and communal spheres, the implementation of long-term budget liabilities in the implementation of PPP is particularly critical, as today the state is deprived of long-term liabilities due to the principle of three-year budget planning.
In addition, this draft law provides the settlement of the State Road Fund to pay for the availability of the road built on PPP, which opens opportunities for the first pilot projects and attracting private investors to the Ukrainian road market.
“Currently, priority infrastructure projects of high public importance are not attractive to private business. Attracting private capital in order to implement them requires budget legislation improvement. The relevant law adoption by the Verkhovna Rada of Ukraine will create conditions for the large-scale infrastructure projects implementation on the terms of PPP” commented Iryna Novikova, Deputy Minister for Development of Economy, Trade and Agriculture of Ukraine.
The draft law has been developed by the Ministry for Development of Economy, Trade and Agriculture of Ukraine with the support of the World Bank Group.