The Government of Ukraine’s (GoU) strategy for achieving the Sustainable Development Goals emphasizes the importance of PPPs for improving the country’s infrastructure for service delivery and includes an ambitious target of 45 new Public-Private Partnership (PPP) projects by 2030.
In order to achieve this objective, the GoU has made significant progress in developing a PPP pipeline through recently adopting with the Bank’s support the new Law on Concession and amending the PPP Law, strengthening the PPP Unit housed in the Ministry of Economy (MoE) creating the PPP Implementation Facility and developing a pipeline of viable PPP projects.
In October 2020 the Ministry of Infrastructure of Ukraine (MIU) launched the “Road PPP Program in Ukraine” to engage the private sector in Ukraine’s existing road network through PPP contracts to facilitate quality road network upgrades and long-term maintenance through private investment. Advancement of the GoU’s PPP agenda is dependent on the development of skills, capabilities and digital e-government tools and a suitable level of human capacity as well as the presence of robust PPP practices in the national and sub-national government level. Therefore, the ongoing priority for the GoU is to build capacity for developing, procuring and implementing PPP projects, assessing their fiscal impact, mitigating, and managing the associated risks. Both, EBRD and GoU have perceived a current lack of human capacity and capability, especially within the MIU, to procure, deliver and manage high-quality concessions according to best international practice and recognised opportunities for creating enhanced capability to plan, develop and procure critical infrastructure through development of a digital end-to-end process for public infrastructure management.
Key institutional requirements, processes and new digital tools are necessary if the PPP program of Ukraine is to ensure economic growth and shared prosperity in fiscally sustainable manner. In June 2020, the MIU officially requested the EBRD to support the provision of assistance to establish sustainable mechanisms for PPP/concession management.
In order to address this petition, the EBRD contracted a consultancy assignment in August 2020 to undertake the PPP Diagnostic and Legacy Structure Design, Analysis and Recommendations.The diagnostic and recommendations were presented to the MIU in January 2021 who subsequently agreed with the conclusion that there is too little current capability within the GoU to drive the development of PPP projects from preparation to transaction and, in the case of signed projects, manage the implementation and monitor the PPP contracts. In the light of the above, the GoU has expressed its interest and requested collaboration from EBRD to undertake support tasks to enhance the effectiveness of the MIU and key government ministries (MOE and Ministry of Financce) responsible for planning, procuring, delivering and managing in the PPP deals with the private sector.
In respect of creating the new digital governance framework and tools for PPPs/concessions in Ukraine, the objective is to build on international sustainable infrastructure standards promoted by Sustainable Infrastructure Foundation “SOURCE” platform and utilizing the Bank’s experience and lessons learned from digitalisation of public procurement in Ukraine, integrate SOURCE with the e-government systems of the Ukrainian government.
The proposed Public-Private Partnership Policy, Planning, Institutional Capacity and eProcurement Reform Framework will consist of a comprehensive package of technical assistance and will aim to provide support to the key government ministries in Ukraine to establish sustainable mechanisms and create the new digital governance framework and tools for PPPs/concessions in Ukraine. The Framework consists of multiple assignments.
The Technical Cooperation Assignment at hand will provide support with development and piloting new digital tools for the PPP projects. In particular, EBRD will support integration of “SOURCE” integration with existing e-government tools and data repositories in Ukraine as well as formulating interoperability standards for future generations of digital government tools, including SOURCE training for MIU, MOE & MoF staff. This Assignment is a continuation of the previous phase of piloting of Phase 1 of SIF SOURCE in Ukraine implemented under the contract C43052/499/7115 linked to TCRS 499 “Regional: Infrastructure Project Preparation Facility (IPPF) - Other Activities Window: Integration of SOURCE for the development and management of quality infrastructure projects in Ukraine”.
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