President of Ukraine Volodymyr Zelenskyy signed Law of Ukraine “On Concession” № 155-ІХ approved by the Verkhovna Rada on September 3, 2019.
The document opens new opportunities for cooperation between the State and business. It is expected that the concession will provide investment in social, transport, energy, housing and communal infrastructure, health care; will contribute to the modernization and creation of new infrastructure, effective management of State and communal property, the provision of quality public services and the increase of the fiscal space of the State.
The law aims at improving the legal regulation of concession activities, which will provide an opportunity to effectively attract domestic and foreign investments in the economy of Ukraine and promotion of the development of infrastructure.
The document makes amendments in 25 legislative acts of Ukraine in order to regulate relations in the sphere of involvement of private business in infrastructure under the conditions of public-private partnership.
It provides for the introduction of a single procedure for initiating and adopting a public-private partnership for all forms of public-private partnership, including concessions.
The law also establishes a transparent procedure for selecting a concessionaire (concession tender, competitive dialogue), provides for the possibility of involving independent experts in the work of the commission; possibility of involvement of advisers for preparation of concession projects, tender documentation; reliable guarantees for concessionaires and creditors; a clear regulation of the ownership of the concession object, the purpose of which is to maintain the ownership of the concession object within the State / territorial community.
The document also provides a procedure of transformation of rent concession in the case of an appropriate application by the tenant, subject to additional investment.
In addition, the law allows the replacement of the concessionaire in case of improper fulfillment of its obligations.
The document also regulates the peculiarities of the concession on markets that are in a state of natural monopoly; peculiarities of concession on the construction and operation of highways; financial issues in concession projects; land and town planning issues for the implementation of concession projects.
In addition, the law allows dispute resolution in international commercial or investment arbitration, as well as establishes a transparent procedure for control and monitoring of concession agreements, etc.