The Verkhovna Rada of Ukraine has fully approved bill No. 7508, aimed at improving the mechanism of public-private partnership (PPP). The main goal of the new law is to create conditions for attracting up to $1 billion in investments for the reconstruction of the country’s infrastructure in the coming years.
This is reported by Finway
Hybrid Partnership Model and Simplified Procedures
The new law introduces a hybrid model of PPP, allowing for the combination of budget financing, grants from international donors, and private investments. One of the key innovations is the ability for the state to apply simplified procedures for recovery projects during martial law and for seven years after its conclusion. This initiative applies to projects of any scale, which will facilitate the rapid restoration of critical infrastructure.
The law also provides additional guarantees for investors and updates over 30 sectoral laws, opening up the possibility of implementing PPPs in areas where it was previously nearly impossible: specifically, in healthcare, education, culture, transportation, and utilities.
“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,”
Expectations for Investments and Reforms
The new legislative initiative simplifies the attraction of funds for small projects with budgets up to €5.5 million and harmonizes Ukrainian legislation with European standards. It also provides for the possibility of using external donor support to finance projects.
The developers of the bill predict that the changes will allow for an additional influx of ₴8 to ₴10 billion into the Ukrainian economy annually. According to their calculations, if five projects worth between ₴50 and ₴100 million are implemented in each region, it will significantly accelerate the process of recovery and development.
The head of the Council’s Committee on Economic Development, Dmytro Natalukha, emphasized that the adoption of the law is not only an investment reform but also an important tool for the rapid launch of recovery in the most affected regions. This is also a positive signal for international partners interested in the reconstruction of Ukraine.