On 30 July, the president of Ukraine signed a law amending certain legislative acts to improve the mechanism for attracting private investments through public-private partnership (PPP) and returned the document to the Ukrainian parliament. The document aims to accelerate the reconstruction of war-damaged infrastructure and facilitate the construction of new facilities related to the post-war restructuring of the Ukrainian economy.

This was announced in a statement on the parliament's official website.

"Why is this so important? Because the reconstruction of Ukraine cannot be carried out solely with budgetary funds. All over the world, infrastructure is built in partnership with businesses and donors, and PPPs are specifically the mechanism that enables the involvement of private investors in truly large-scale strategic projects or smaller but essential ones. The PPP concept has existed in Ukraine for a long time, but it has not been effective. Only two major concession agreements have been concluded in recent years. Therefore, thanks to these legislative changes, we hope the PPP mechanism will finally work and bureaucracy will no longer be an obstacle to investment," said Ukraine’s Economy Minister Oleksii Sobolev.

As previously reported, the adoption and signing of the law is important for the preparation and implementation of concession projects and other forms of public-private partnership. In particular, these include the concession project for the Chornomorsk Port’s Terminal No. 1, Container Terminal, and Terminal No. 5 (the rail-ferry complex), as well as the concession projects for the assets of the Ukrainian Sea Ports Authority (USPA) that are linked to these terminals.

In addition, the law refines the regulatory framework for the national tolling system project, which involves charging fees for the use of specific sections of highways by freight vehicles.

In the transportation sector, the document will also cover pilot projects for the construction, operation, and maintenance of roads and/or tunnels. Furthermore, it may encompass airport concession projects. It may also address public transportation, including the procurement of rolling stock and the provision of passenger transportation services.

According to Sobolev, the key aspects of the law are as follows:

- Public-private partnerships can involve not only government authorities but also state-owned companies and enterprises.

- New sources of funding: private investments can now be combined with donor funding. This significantly reduces risks for businesses and makes projects more accessible.

- Investor guarantees: the state ensures the stability of contract terms (even if legislation changes), protection of rights, and establishment of clear compensation rules.

- The "British model" or "infrastructure in installments:" the investor builds the facility with its own funds, and the state or local authorities pay back the funds in installments after the facility is operational.

- Simplified procedures for "small" projects (up to EUR 5.5 million): the preparation period for such projects has been reduced from 19 to 12 months.