Today, two years have passed since the new law on leasing public and municipal property came into force.
Until 2020, the shadow market for leasing public and municipal property had been flourishing in Ukraine. This led to the fact that 28 million square meters of state-owned real estate either stood idle or were used under non-transparent schemes. This is the area of 200 Olimpiiskyi stadiums.
What has changed?
The selection of lessees of public or municipal property began to take place at electronic auctions in the Prozorro.Sale trading system under the rules of absolute transparency. Moreover, citizens finally got access to full information about public and local leases.
Key positive changes in the law:
* Lists of leased property are maintained in a single electronic system. Now, Ukrainians see how much real property is planned to be leased in their communities, and, in the end, with whom lease agreements are concluded and for how much.
* The lessee is selected through an open tender at an electronic auction, where the main criterion for choosing the winner is a high price. This creates full-fledged equal conditions for business and allows attracting more funds to the national and local budgets.
* All lease agreements are published on Prozorro.Sale. Thus, everyone can get acquainted with the texts and terms of these agreements in one place.
Therefore, another big corruption risk in the legislation on lease has been eliminated.
What do the numbers reveal?
During these two years, 64,200 lease objects were entered into the system and more than 32,000 auctions for leasing public and municipal property were held, of which about 75% were successful. Prozorro.Sale gathered more than 16,000 lessees on its platforms.
Due to the activity of the organizers, the income from leasing public property amounted to more than UAH 113 mln over these two years from more than 19,000 lease agreements concluded in the system. And this is with a total declared cost of UAH 79.77 mln. The average increase in the minimum price (completed auctions) is 42.62%.
By the way, the lease of municipal property accounts for UAH 57.88 mln of income from completed auctions.
955,300 square meters of public and municipal property were leased.
Leaders in lease
Most of the successful auctions for the lease of public property for 2020-2022 (953) were organized by the regional branch of the SPFU in Dnipropetrovsk, Zaporizhzhia, and Kirovohrad oblasts (614 of them were completed in the amount of UAH 4 mln, the total area leased was 63,200 square meters).
The Department for Work with Assets of the Dnipro City Council organized the highest number of completed auctions for the lease of municipal property for 2020-2022 — 503 procedures in the amount of UAH 1.8 mln. We are talking about 66,700 square meters of area.
Kyiv is the leader in the number of announced auctions for the lease of both public and municipal property: 3,479 auctions. The capital is also the leader in revenue: UAH 22.3 mln.
Anti-leader (except for Crimea) is the Ternopil oblast, which gained UAH 410,000 at 276 auctions for leasing public and municipal property.
It is important to understand that the transfer of public and municipal property for rent on the basis of transparency and competition directly influences the well-being of the community and the ability to improve infrastructure and comfort locally.
This reform was another impetus for the development of the field, and we hope that in the future we will be able to see a sharp trend of changes thanks to the adopted law.