On Friday 13 September Verkhovna Rada of Ukraine has taken as a basis the new draught Law of Ukraine on Concessions voted for by 293 people’s deputies.
Moreover, 254 votes have passed the decision the bill No.1046 is to be considered under the compact procedure.
Let’s remind that the previous concession bill No.8125 had been approved in the first reading on 03 April 2018 by 240 votes. However, upon the elections a new draught was registered on 29 August, and re-registered after some redesign on 10 September.
As the bill’s explanatory note says, the concession mechanism is going to enable the state to transfer to vest the private sector with investment, social, environmental, and other obligations for the entire period of concession, at the same time keeping the assets in public ownership. Simultaneously, the state budget is going to obtain a part of the private investor’s activities resulted profit in the form of concession fees. Employment of the concession mechanism will allow the state to attract considerable private investments to upgrade and enhance efficiency of the infrastructure objects use, such as sea and river ports, motor roads, airports, and other public assets.
The new draught law, inter alia, establishes:
– demarcation of regulation for concession and other PPP forms;
– a single procedure of initiating and taking decision regarding PPP realisation for all its forms including concession;
– introduction of a transparent procedure for selecting a concessionaire (concession tender, concession dialogue) that corresponds best international practices, in particular UNCITRAL’s Legislative Guide on Privately Financed Infrastructure Projects;
– possibility of involving advisers and independent experts to prepare PPP projects in the form of concession;
– additional guarantees for concessionaires and creditors, in particular an opportunity of replacing a concessionaire by another one stipulated by the concession agreement;
– facilitation of land plots allocation procedures for PPP projects in the concession form etc.
As it was reported before, President of Ukraine Zelensky announced the adoption of this law within this autumn.
https://cfts.org.ua/news/2019/09/13/zakonoproekt_o_kontsessiyakh_prinyat_verkhovnoy_radoy_v_pervom_chtenii_55231