1. Is Ukraine Ready for PPP?
Tatiana Korotka, Director of PPP Professional Services
USAID Public Privet Partnership Program

2. Program Summary
P3DP is a five year USAID program that started in October 2012
to promote PPPs a model to improve communal services and
infrastructure, in accordance with international best practices.
Objectives:
•Building institutional capacity of the national PPP Unit
•Enhancement to legal and regulatory framework
•Building capacity of local organizations
•Identification and developing pilot PPP transactions

3. Country context*
Population
45,593,300
GDP
$176,3 billion
GDP growth
0.3%
Inflation
0.5%
GED
75,6% ВВП
Public Debt
36,8%
Public investment required for
sustained economic growth
$100 billion over next 10 years
(PFR, 2011)
*Source: http://www.worldbank.org/en/country#
:

4. Regional results – Overall scores*
Rank
Countries can also be compared
based on groups rather than exact
scores
Several countries fall in the
“nascent” category.
 They fall in this grouping for
different reasons
 Inadequate legal and
regulatory frameworks
 Lack of political will or
strong focus on
privatization
 Insufficient capacity
*Source:
Economist Intelligence Unit
Country
Score
1
2
3
4
5
6
7
8
9
10
11
Croatia
Lithuania
Slovenia
Latvia
Hungary
Poland
FYR Macedonia
Russia
Albania
Turkey
Slovakia
63.5
62.9
61.8
54.4
53.8
52
51.1
51
50.5
49.6
47.6
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Romania
Bulgaria
Serbia
Armenia
Estonia
Moldova
Kazakhstan
Montenegro
Bosnia and Herzegovina
Ukraine
Georgia
Kyrgyz Republic
Mongolia
Belarus
47.4
45.5
43
39.9
37.7
35.8
35.6
31.7
29.6
28
27.8
25.6
24.6
10.3
Level
Developed
Emerging
Nascent

5. Baseline Survey
Please, indicate the reasons, in your opinion, for which the
partnership was not established (several answers are possible):
Notes: Several answers are possible

6. Legal & Regulatory PPP Environment
Legislative Issues
Results
PPP Policy and Strategy
PPP Development Concept for 2013-2018
PPP Strategy and Implementation Plan (2014)
PPP Laws
Framework PPP, Concessions (district heating,
water supply and sanitation, motorway, sea ports)
Tariff Regulations
RAB-methodology for water and heat tariffs, SWM
regulations being developed
Licensing, PPP
procurement and PPP
Procedures
PPP development, tender, and appraisal
methodology adopted by GOU
Budgetary Restrictions
Draft amendments to laws related to ESCO
contracts and governing Budget Code
International Arbitration,
Land Issue
Draft amendments to PPP Framework Laws
Fair Termination payments
Draft law adopted by Verkhovna Rada

7. Institutional Environment
PPP Unit
•Facilitate the use of PPPs in Ukraine
•Establish systems and processes to monitor the use
of PPPs in Ukraine
•Develop staff capacity necessary for its PPP work
Line Ministries
Local Governance Authorities

8. PPP Pilot Projects Practice
Current Sectors Solid Waste Management, District Heating, Healthcare,
Parks & Recreation, Renewables & Energy Efficiency, Education,
Transportation
2 to 4 projects expected to go to Public Tendering in 2013
Pilot City Capacity
Development
•General PPP Training
•Specialized Training
•Sectoral Seminars
•Study-tour
•Stakeholder
Communication Support

9. Zaporizhia Healthcare
Objective
Increase quality and improve access to medical services
Details
•Hospital remains Municipal-owned
•Private partner to introduce new
fee-based medical services
•Free medical services remain
•Private partner to renovate sections of
hospital
•Feasibility Study complete and awaiting
approval by Municipality Authorities
•PPP agreement ≈ 25 years
•Investment size ≈ $2,000,000
Tender is expected in November 2013

10. Simferopol Urban Park Renewal
Objective Improve park
landscape and quality of facilities
without additional cost to city
Details
•Park remains Municipal owned
•Green zone improves
•Feasibility Study is expected
by the end of August
•PPP agreement ≈ 25-30 years
•Conventional breakdown into «green» and «commercial» zones
•Total Investments ≈ $12,000,000
Tender expected in December 2013

11. Kyiv Summer Sports and
Recreation Facility
Objective Establish a sports
and recreation zone on Dolobetsky
Island along the Dnipro river in Kyiv
Details
•Green zone remains untouched
•P3DP provided input to FS, tender
criteria, stakeholder communications
•PPP agreement ≈ 15 years
•Total investments ≈ $2,470,000
Tender results expected in October
2013

12. Malyn Energy Efficiency
Objective Modernize and adapt district heating facilities to renewable
and more efficient energy sources
Details
•DCO (design-constructionoperation) PPP agreement
•Maintenance of the heating
facility
•Decrease cost of heating
•PPP agreement ≈ 10-15 years
•Total investments ≈ $500,000
Tender is expected in
December 2013

13. Kyiv Kindergarten
Objective Increase Kindergarten capacity by reconstruction
and renovation of existing buildings
Details
•Municipality retains ownership of the
kindergarten(s)
•Two facilities are being considered
•Private partner is responsible for capital
renovation and operations
•Cadre of underprivileged children will be
granted attendance free of charge
•PPP agreement ≈ 15+ years
•Total investments ≈ $1,620,000 / $2,400,000
Tender is expected in 2014

14. PPP Projects in Development
Dnepropetrovsk Street
Lighting
Introduce energy-efficient and
effective lighting system
Details
•Modernize street lamps and
infrastructure
•Improve system
management
•Improve safety and quality of
life in city
•PPP contract ≈ 15 years
Ivano - Frankivsk
SWM
Improve landfill operations
Details
•Increase landfill capacity
and improve environmental
condition
•Gas-to-energy operations
•PPP contract ≈ 15+ years
Lviv Parking
Garage
Reduce traffic congestion
and pollution
Details
•Off-street parking facility
•Possible co-financing by
City
•Construction and operation
•PPP agreement ≈ 15+ years

15. In Summary
Conclusions: We witness the dawn of PPPs in Ukraine
Key success factors:
Stronger Political Support on the local level
Effective Financial Infrastructure
Success Stories
Improved investment climate
 Capacity building

16. Thank you!
tkorotka@fhi360.org
ppp-ukraine.org