Ukraine to develop public-private partnership projects with IFC

This issue was discussed during an online meeting between Ukrainian Prime Minister Denys Shmyhal and IFC Managing Director Makhtar Diop, the report said.

They discussed cooperation in the field of infrastructure and energy, regional development and the capital market.

Shmyhal said that Ukraine is actively rebuilding its infrastructure and seeks to develop a public-private partnership (PPP) mechanism.

According to him, the IFC and the Ukrainian Infrastructure Ministry have agreed on the first two sections of the road for future PPP projects: Lutsk - Poland's border and Kharkiv - Zaporizhia.

"We plan to conclude agreements with IFC by the end of this year. Construction at the expense of private investors will be carried out for the first time. It is very important to involve quality investors in the first pilot projects in order to expand the mechanism to a larger number of objects," Shmyhal said.

He noted the high level of cooperation with the IFC on the preparation of pilot projects for the concession of the seaports of Olvia and Kherson.

He added that given the positive results of the concession, cooperation will also be continued on Chornomorsk Sea Commercial Port.

"We hope to speed up work on the implementation of other public-private partnership projects, including airports, and railway station concessions," Shmyhal said.

According to Shmyhal, Ukraine is also interested in developing public-private partnerships in the restoration of irrigation systems.

"Climate change and challenges associated with this have recently brought together many world leaders in Glasgow. It is important to find the right steps to adapt to climate change, and the development of an irrigation system is one of them. Ukraine is interested in cooperating with the IFC to attract investors to the development of irrigation projects," he said.

Shmyhal added that Ukraine's strategic goal remains joining the EU's ENTSO-E energy system and developing renewable energy.

In addition, he noted that the IFC had become the first international financial institution to sign an agreement on joining the capital of a state-owned Ukrainian bank and, accordingly, will become a shareholder of Ukrgasbank. This is a strong signal to all investors that the country is fulfilling its commitment to reforming the banking sector and building a sustainable banking model based on global best practices.

Shmyhal and Diop also discussed the financing of municipal projects. Shmyhal thanked the IFC for supporting the development of municipal infrastructure.

"We look forward to further expanding the IFC's direct funding to local governments, in particular to attract investment in the sorting and recycling of solid waste in Ukrainian cities," he said.

In addition, Shmyhal noted that the government and the National Bank of Ukraine were taking successful steps to develop the capital market in Ukraine. The government is also working out a mechanism for introducing the second (accumulative) level of the pension system, he said.

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