UKRAINE PUBLIC PRIVATE PARTNERSHIP DEVELOPMENT PROGRAM (P3DP) ANNUAL REPORT– Y2

The Public-Private Partnership Development Program (P3DP) aims to promote PPPs as a model for development, in accordance with international best practices. P3DP directly supports selected municipalities in implementing PPP projects and assists the Ministry of Economic Development & Trade (MOEDT) in developing policies, procedures, and regulations. P3DP's four interrelated program objectives are: 1) enhancements to the legal and regulatory framework; 2) establishment of oversight and approval procedures for the national-level PPP Unit; 3) raising awareness and developing capacity at the national and municipal levels; and, 4) implementation of pilot PPPs in select industry sectors. During the past year, P3DP made significant progress toward improving the Ukrainian PPP environment. The program expanded sector-specific support to municipalities to develop PPP solutions that improve delivery of goods and services to their communities. P3DP's technical assistance and capacity development initiatives laid the foundation for private sector participation in PPP projects. The program increased knowledge at the municipal and national levels through workshops, tailored trainings, and study tours. P3DP industry experts led the development of national-level regulations and municipal-level PPP implementation analysis. The importance of this foundational work is highlighted by progress through the PPP project lifeline, which will result in taking 2 to 4 PPP pilots to the private market through public tenders in the year ahead. P3DP's activities during the year focused on contributions to municipalities to move them closer to the PPP tendering stage or identifying obstacles that prevent a PPP-type structure from being utilized. A primary goal of P3DP is to use pilot PPPs as learning experiences to provide feedback on positive and negative aspects of PPP implementation and define corrective actions needed to create a PPP-friendly environment. Both successful and unsuccessful efforts in pursuit of PPP implementation are valuable knowledge-building experiences to share with other municipalities and provide feedback to positively influence new national level regulations and policies. P3DP's key contributions in achieving progress toward PPP tendering included establishing formal assistance plans with six municipalities working in four different economic sectors. PPP implementation analysis was completed or substantially underway for PPP pilots in solid waste, private healthcare, city park, and street parking. Initial activities also began for potential pilots in kindergarten care, energy efficiency, and water supply sectors. P3DP organized international study tours for Ukrainian officials to accumulate knowledge on international PPP best practices with visits to landfills, hospitals, parking garages, parks, and PPP units in neighboring countries.