Ukraine is preparing to abolish a controversial rule whereby the state's share in joint activities must exceed 50% of the participants' joint property. Although intended to protect public property and ensure maximum benefit to the state, the rule overlooks the fact that many private companies are more likely to abandon the idea of a joint project than agree to terms which guarantee that the state owns most of the business.
A new law on public-private joint activities seeks to ensure maximum benefit for the state. However, in stating that the public share in a joint activity must exceed 50% of the participants' joint property, it overlooks the fact that many private companies are more likely to abandon the idea of a joint project than agree to work with the government on terms which guarantee that the state owns most of the business.
Parliament has accepted a draft law that seeks to stipulate territorial jurisdiction over appeals against decisions by the Antitrust Committee on violations of state procurement legislation. This apparent attempt to gain political control over appeals against the results of state procurement procedures is likely to affect all procurement participants, including administrators of state funds.
Parliament has passed legislation that amends the protection of concessionaires' rights. A new section of the Law on Concessions rules out expropriation, except in response to emergencies. It also introduces favourable rules on the conditions of project implementation and seeks to minimise state interference
Parliament has passed the Law on Public Procurement, which sets out the legal and economic basis for the public procurement of goods, works and services. The law applies to procurement that is either fully or partly at the state's expense, provided that the total value of the procurement is no less than UAH100,000 for goods and services or UAH300,000 for works.
A recent resolution clarifies that certain projects for Euro 2012 will fall outside the Regulations on Procurement of Goods, Works and Services for Public Funds. The amendments affect the construction and renovation of stadia and training facilities, but also apply to work on major roads and airports as Ukraine prepares to co-host the football championships for the first time.
A new law sets out the principles of public procurement and applies to all purchases of goods, works and services above set thresholds. In addition to setting out the accepted forms of public procurement, the law provides for the establishment of a special appellate body and a public procurement unit within the Ministry of Economy.
A new resolution aims to improve the public procurement system by preventing corruption and strengthening control over procuring parties. Works and services must be procured from Ukrainian producers and providers, with foreign partners being considered only where a Ukrainian option is unavailable.
Recent procurement law amendments are intended to reduce the price of goods, works and services by requiring them to be sourced directly from producers or service providers (or their official representatives or distributors). The impetus for the change came from problems in the pharmaceuticals sector, where reselling schemes had driven up prices, but its consequences will be far wider.
The Draft Law on the Main Principles of Cooperation between the State and Private Partners has been presented to Parliament. It aims to regulate the preparation, fulfilment and termination of public-private partnership agreements, specifying the warranties available to protect the parties' rights and interests. It also identifies the sectors in which such agreements can be used.
A Cabinet resolution revises the procedure whereby state enterprises, institutions and organizations may attract commercial investors, clarifying the requirement to hold tenders on open bidding terms. However, it remains unclear whether certain forms of relationship, including public-private partnerships, are affected. Until this is clarified, investors partnering with state enterprises are on uncertain ground.
New framework legislation determines the principles of economic cooperation between the public and private sectors. Among other things, it provides for various forms of support and guarantee for private partners, widens the scope of activities in which public-private partnerships may engage and sets out the procedure to be followed if a private partner is to be given rights to use land.
A decree from the Ministry of the Economy lists the documents that must be submitted to the ministry when agreeing the procedure for single and restricted tendering. It also sets out the technical and economic basis for establishing single tendering and clarifies the grounds on which the ministry may reject an application.
Changes to the Regulation on the Purchase of Goods, Works and Services from State Funds specify that the regulation will not apply to the procurement of land surveys, scientific and research projects and disassembly work in connection with the renovation of the Olympic Stadium for the Euro 2012 football championships. However, the change contradicts legislation that prohibits new laws for specific projects.
A new Interim Provision on the Procurement of Goods, Works and Services at State Expense not only differs radically from the amended version of Ukraine's procurement law, repealed in order to comply with World Trade Organization requirements, but also diverges from the original 2004 law. The temporary regulations aim for greater transparency in procurement and reorganize state supervision in the area.
The European Football Championships in 2012, which will be co-hosted by Ukraine, have prompted discussions about whether the country's infrastructure needs can be met by public-private partnerships (PPPs). Statements from the Ministry of the Economy and a draft law on PPP projects will help to convince private investors that Ukraine is a reliable long-term investment partner.
Including: Law on Concessions; Public Procurement and Tender Procedure.