On December 24 the President signed the law “On Lease of National and Municipal Property”.

According to the president’s website, “this law implements a simple and transparent procedure of leasing national and municipal property, which is more advantageous thanks to free competition”.

Transparency International Ukraine has been helping with editing and recommendations for the draft law. The organization also considers a great victory the fact that the MPs have taken into account our recommendations concerning harmonization with the legislation on the matter of local self-government and exclusion of foreclosure of the leased premises on sole source.

Therefore, starting from the next year selection of lessees of national or municipal property will be held through electronic auction in the electronic trade system by the rules of total transparency.

Key positive changes of the law:

  • Maintaining lists of property in the electronic system, which are to be leased. In this way Ukrainians will see how much of the real property on lease is being leased in their communities, for how much, and to whom. This will be the first step towards transparent and public accountability of national and municipal property.
  • A lessee will be selected through an open tender in an electronic auction, where the main criteria for the choice of the winner will be a high price. This will create full-fledged equal conditions for businesses and allow citizens to receive more funds for their budget.
  • All the contracts will be disclosed in the electronic trade system. Thus, in the same place everyone will see who and under what conditions rents community property.

So another great corruption-driving risk in the legislation has been eliminated.

 

Let us remind you that TI Ukraine’s lawyers prepared a detailed legal analysis back at the stage of the first reading of the draft law.

Selection of lessees of national or municipal property will be held through electronic auction in the electronic trade system by the rules of total transparency.