PPP – cooperation between the state, territorial communities represented by relevant bodies that, in accordance with the Law of Ukraine “On the Management of State-Owned Objects”, manage state-owned objects, local authorities, and legal entities, except for state and communal enterprises, institutions, organizations (private partners), which is carried out on the basis of a contract in accordance with the procedure established by the Law of Ukraine “On Public-Private Partnership” and other legislative acts.

DPP features:

  • creation and/or construction (new construction, reconstruction, restoration, overhaul and technical re-equipment) of a public-private partnership object and/or management (use, operation, maintenance) of such an object;
  • long-term relationship (5 to 50 years);
  • transfer of part of the risks to a private partner in the process of implementing a public-private partnership;
  • investment by a private partner in a PPP object.

PPP objects:

  • existing, in particular reproduced (through reconstruction, restoration, capital repair and technical re-equipment) objects that are in state or communal ownership or belong to the Autonomous Republic of Crimea, or the property of business associations, 100 percent of shares (parts) of which belong to the state, territorial community or the Autonomous Republic of Crimea;
  • created or newly built objects in accordance with the contract concluded within the framework of public-private partnership.

PPP forms:

  • concession agreement;
  • property management agreement (only if the agreement concluded within the framework of public-private partnership stipulates the investment obligations of the private partner);
  • agreement on joint activities;
  • other agreements.

Initiation of the PPP process

1. Proposals for PPP implementation:

Proposals are prepared by central, local executive bodies, local  authorities or bodies of the Autonomous Republic of Crimea, the National Academy of Sciences of Ukraine, branch academies of sciences, state, communal enterprises, institutions, organizations, business associations, 100 percent of shares (parts) of which belong to the state, territorial community or the Autonomous Republic of Crimea, or persons who may be private partners.

Stages of the PPP proposal implementation:
1) preparation of a conceptual note on PPP implementation;
2) preparation of the feasibility study.

2. Analysis of effectiveness of PPP implementation, results of which become a basis for a conclusion about the expediency or impracticality of PPP implementation.

3. The decision on PPP implementation (taken within 3 calendar months from the date of submission of proposals on PPP implementation).

Competitive procedure

The competitive procedure for determining a partner is regulated by the Competitive procedure for determining a private partner for the implementation of public-private partnership with respect to objects of state, communal property and objects belonging to the Autonomous Republic of Crimea, approved by the resolution of the Cabinet of Ministers of Ukraine as of 11 April 2011 No. 384.

1. Announcement of the competition (made by the state partner).

2. Application submission ( not less than 60 and not more than 90 calendar days).

3. Preliminary selection of applicants:
To participate in the preliminary selection, the applicant must meet at least 3 of the following criteria:

  • applicant has the equipment and material and technical base to perform design, construction and operational works and material and technical maintenance, which are necessary for the implementation of the public-private partnership agreement;
  • applicant has appropriate level of professional and technical qualifications of the employees;
  • applicant has documented experience of performance of agreements of similar in scope;
  • applicant has resources to ensure financing of the project, which is carried out under the terms of public-private partnership, or experience of guaranteed attraction of financing for implementation of similar projects;
  • other requirements according to the decision of the state partner.

To confirm applicants’ compliance with pre-selection requirements, supporting documents can be submitted both for the applicant himself and for persons related to the applicant by control relations.

4. Decision on admitting/not admitting applicants to participate in the competition (within 45 working days from the deadline for submitting applications, the commission reviews applications, prepares a draft decision on admitting (not admitting) applicants to participate in the competition and submits it to the state partner for approval; within 7 working days the state partner approves the relevant decisions; the commission informs the applicant within 3 working days).

Applicants admitted to participate in the competition are provided simultaneously with the notification of admission the following information and documents:

  • information on the procedure for obtaining instructions for participants, a draft public-private partnership agreement and other documents that are part of the tender documentation;
  • a draft agreement on the confidentiality of the provided information and the procedure for concluding it (if necessary);
  • information on the amount and procedure for paying the registration fee (if any).

5. Competitive proposals submission.

6. Evaluation of competitive offers and determination of the winner of the competition (the total period of consideration and evaluation of competitive offers cannot exceed 45 working days from the deadline for submitting competitive offers).

The winner of the contest is the participant whose financial and economic part of the tender proposal received the highest number of points.

7. Conclusion of a concession agreement with the winner of the competition (within 10 working days from the date of publication of information about the winner of the competition, the state partner invites the winner to negotiations on the conclusion of the agreement, which must be concluded within 90 calendar days from the date of receiving such an invitation).

More detailed information on PPPs can be obtained from the official website of the Ministry of Economy, where the manual on PPPs is posted.