14.03.2009

Discussion of the draft laws «On Public Private Partnership»

On March 12, 2009 Wolfram Rehbock took part in the meeting of PPP working group of the Committee on Industrial and Regulatory Policy and Entrepreneurship of the Verkhovna Rada of Ukraine. In the discussion of the various draft laws of Ukraine «On Public Private Partnership» chaired by a parliament deputy participated representatives of the state administration and lawyers. It is obvious that now the dominant belief is that the special regulation is more likely to provide for obstacles rather than support. Nevertheless, the state authorities are inclined to pass the frame law, which would outline the planned public policy and thereby draw their attention to the possibilities of PPP. Finally participants of the meeting agreed that changes should be introduced to the following laws:
 
  • The Land Code of Ukraine (including changes regarding access rights of the building manager to the system of communications);
  • The budget legislation (carrying out annual planning in compliance with the obligations of the state under long-term PPP-contracts);
  • Legal regulation of the public procurements (mandatory holding of tender procedures (the auctions) and application of a special procedure)
The comment of Wolfram Rehbock:
 
«Considering that even the fundamental issues still have not been settled, it is too early to expect adoption of the corresponding law soon. However, we have reached consent that the special PPP law is not needed. On the one hand, the notion PPP is not defined; and on the other hand, freedom of actions will be thereby restricted. We also gave recommendations regarding legal regulation of public procurements; this part of discussion was needlessly made complicated. In any case, there is no need for the separate law on PPP and public procurements, suffice to introduce amendments to the existing legal regulation of public procurements (note: the law on purchase of goods, works and services at the state funds has been repealed). However, in comparison to the situation in Germany, there is a problem that the activity of public authorities is lawful only if they act on the grounds and within the limits of the empowered authorities. This regulation makes clear the position of supporters of legal regulation.
 
Our motto remains the same: it is better to act than to speak. The first pilot projects can serve as examples which will subsequently lead to the faster development of PPP-sector. Thorough study of legislation shows that legal grounds for PPP already exist. The special PPP working group, which will step by step develop typical PPP-contracts, can provide the necessary know-how and thereby reduce costs for implementation of further similar projects».