On June 19, the Verkhovna Rada of Ukraine supported Draft Law No. 7508 at second reading and as a whole. The law introduces a new version of the Law on Public-Private Partnership, updates the Law on Concessions, and amends over 30 related legal regulations. This was announced by Minister of Economy Yuliia Svyrydenko on her Facebook page.
What’s new in Draft Law No. 7508?
– The scope of PPP application is expanded to include new types of transport infrastructure, residential real estate, and social infrastructure. These and other projects will be eligible for funding from new sources, including donor grants.
– The list of public partners is broadened to include state- and municipally owned enterprises. This will make it easier for such entities to attract private investment to develop their own infrastructure.
– The procedure for preparing PPP projects with sub-threshold values (projects worth no more than EUR 5.382 million) is simplified and shortened. These projects will no longer require a feasibility study, and the deadline for making a decision on implementing a PPP is halved.
– A special procedure is introduced for preparing, selecting, and conducting tenders to identify private partners for PPP projects focused on infrastructure and economic recovery.
– Private partners will be selected through updated competitive procedures (open bidding, limited participation bidding, and competitive dialogue), all conducted via the electronic procurement system.
By adopting Draft Law No. 7508, Ukraine has also taken a step toward meeting the European Commission’s recommendation to update legislation on public procurement and PPPs in line with the EU acquis (these areas are regulated under a single Directive in the EU).
Transparency International Ukraine previously analyzed the earlier version of the draft law ahead of the second reading. In addition to positive developments, we also highlighted shortcomings, including an imbalance between the interests of public and private partners and questionable procedures for preparing and selecting recovery-focused PPP projects. We provided recommendations for improving these aspects of the draft. Once the final version adopted at second reading is published, we will analyze it to assess whether the existing risks have been addressed.
This material is funded by the European Union. Its content is the sole responsibility of Transparency International Ukraine and does not necessarily reflect the views of the European Union.
