Ukraine has a law on concessions, which controls the granting of concessions and sets out the basic terms that must be contained in concession agreements. Ukrainian law is developing to include further concession laws specific to each industry sector. The law to regulate concessions in relation to motorways has recently been amended and draft laws on amending the general concession law and on concessions for water supply, heat supply and waste water are being considered by the Parliament of Ukraine. There is broad political support for PPP in Ukraine and an increasing understanding of its potential benefits. As an indication of the level of interest in PPP, the Cabinet of Ministers recently set up a working group to oversee work on the concession agreement for the construction and operation of the Lviv-Krakovets highway. It is intended to bring the existing concession agreement more in line with international standards in order to be able to attract financing for the project.

Ukrainian law in this area is developing and a number of PPPs have successfully closed. Although awareness and understanding of PPP as a procurement tool is increasing, potential investors should be aware that this is still a relatively new idea in Ukraine.

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