The Ministry of Economy of Ukraine and the PPP Agency invites central executive bodies and local governments to send information about potential public-private partnership (PPP) projects for identification to create socially important infrastructure.
PPP mechanism entails long-term cooperation between the state, represented by state bodies and local governments, and private companies. The goal of this cooperation is to finance, create and manage socially important public objects.
PPP project identification is the first step in implementing such projects. It involves project goals determination as well as the identification of the PPP object, including the field of activity and planned location of project implementation.
To be selected as a future PPP project, any potential project must perform socially significant functions and have a positive socio-economic effect on the local community.
The application of the PPP mechanism requires it to be more efficient than achieving the same objectives through the use of other mechanisms, including funding from state/local budgets. It is worth noting that PPP has many advantages, compared to traditional procurement methods. Some of those advantages are:
- The improvement of the efficiency of state and communal property management;
- The improvement of the quality of public services for citizens and businesses;
- The facilitation of the use of the latest technologies and the implementation of innovative solutions;
- reducing the burden on the state budget and optimizing budget expenditures on the provision of public services and public institutions maintenance.
The structure of a plan for potential PPP project implementation must comply with the definition of public-private partnership, stated in Article 1 of the Law of Ukraine on Public-Private Partnership, and the activities proposed by the project proposal must comply with Article 4 of this Law.
Any potential PPP project must comply with the Sustainable Development Goals of Ukraine for the period till 2030. Also, it should be mentioned that the project initiator must be the manager or owner of the land plot on which the project will take place. Alternatively, the right of permanent use of the land plot in question must belong to the state/municipal enterprise.
If a potential PPP project has already been considered and found not to meet the requirements of the PPP mechanism, resubmission of the application is not necessary.
The selected project ideas will receive assistance from the SO “PPP Agency” in preparation for the implementation, including the involvement of international financial organizations.