A new law on public-private partnerships will bring up to $1B in investment for reconstruction.

On June 19, the Ukrainian Parliament fully adopted draft legislation focused on improving the public-private partnership (PPP) mechanism.

“We expect that the mechanism will finally work and will bring us up to $1 billion in investment in specific projects in the coming years. First, these may be the following areas: ports, hospitals, and municipal facilities,” commented Minister of Economy Yulia Svyrydenko.

The law introduces a hybrid PPP model that combines budget financing, grants from international partners, and private investments. Another important change is that the state will have the right to initiate a streamlined procedure for reconstruction projects. The new law will be in effect during martial law and for seven years afterward for projects of any size.

Additionally, the law introduces further guarantees for investors and updates more than 30 sectoral laws. Now, PPP will be able to operate in areas where it was previously nearly impossible – such as medicine, education, culture, transport, and housing.

The law provides for the simplification of procedures for raising funds for small projects worth up to €5.5M. It also harmonizes Ukrainian legislation with European standards and allows for the use of external donor support.