Guide: Investment potential of public-private partnerships

Guide: Investment potential of public-private partnerships

Ukraine’s rebuilding will require significant financial resources, technology, and experience in rapidly rebuilding industrial, social, and residential infrastructure. The Ukraine Recovery Plan, presented in July 2022 in Lugano, Switzerland, envisages raising more than $750 billion for the reconstruction and development of Ukraine over the next ten years, of which $250 billion will be spent on infrastructure projects.

Public-private partnerships (PPPs) should become an important tool for attracting financial resources and management experience from the private sector to rebuild Ukraine as a mechanism for long-term cooperation between the public and private sectors of the economy to bridge the infrastructure gap and provide public services.

As an alternative to traditional public procurement, PPPs have a high potential to attract private investment in all areas of economic and social infrastructure, as well as the country’s defense industry, without significantly increasing the burden on state and local budgets.

A well-developed regulatory and institutional environment, existing experience in implementing PPP projects, along with political will and the adoption of significant changes to current legislation (final adoption of Draft Law No. 7508), create sustainable preconditions for attracting foreign investment in Ukraine’s economy.