The Verkhovna Rada of Ukraine supported in the second reading bill No. 7508 aimed at improving the mechanism of public-private partnership (PPP). The new law paves the way for large-scale attraction of foreign and domestic investments for the implementation of reconstruction projects in various sectors.
This is reported by Business • Media
Main Provisions of the PPP Law
The law provides for the introduction of a hybrid model of public-private partnership, which combines funding from the state budget, grants from international donors, and private investments. One of the key changes is the right of the state to apply simplified procedures for reconstruction projects — this will allow for faster initiation of initiatives even during martial law and for seven years after its conclusion, regardless of the cost of the projects.
The document also provides investors with additional guarantees and updates over 30 sectoral laws. Thanks to these innovations, the PPP mechanism will be able to operate in areas that were previously practically inaccessible for such cooperation, including healthcare, education, culture, transportation, and housing management.
Investment Attraction Forecast and Expected Effect
According to Minister of Economy Yulia Svyrydenko, the launch of the updated PPP mechanism will allow for the attraction of up to $1 billion in investments in the coming years, primarily in sectors such as ports, medical institutions, and municipal facilities. The bill also ensures the simplification of funding procedures for small projects costing up to €5.5 million, harmonizing Ukrainian legislation with European standards and opening opportunities for external donor assistance.
“We expect that the mechanism will finally work and bring us up to $1 billion in investments in specific projects in the coming years. Primarily, these could be sectors such as ports, hospitals, and municipal facilities,” commented Minister of Economy Yulia Svyrydenko.
The developers of the law predict an annual attraction of an additional ₴8-10 billion to the Ukrainian economy, provided that an average of five projects are implemented in each region, with a minimum cost ranging from ₴50 to ₴100 million. The head of the Rada Committee on Economic Development, Dmytro Natalukha, emphasized that the reform is not only investment-oriented but will also serve as a tool for the rapid start of reconstruction in the most needy regions. According to him, the adoption of the law is an important signal to international partners regarding Ukraine’s readiness for large-scale reconstruction.