Law of Ukraine "On State-Private Partnership"

Date of entry into force:

October 30, 2010

(Abstract)

The Law determines the organizational and legal principles of cooperation between state partners and private partners, and the main principles of state-private partnership on a contractual basis.

According to Article 1 of the Law, a state-private partnership is cooperation between the state of Ukraine, the Autonomous Republic of Crimea, territorial communities in the person of appropriate bodies of state power and local self-government (state partners), and legal entities, except for state and municipal enterprises, or natural persons – entrepreneurs (private partners), carried out on a contractual basis.

According to Article 5 of the Law, the following agreements can be concluded as part of state-private partnership, according to the Law and other legislative acts of Ukraine:

·         concession agreements;

·         cooperation agreements;

·         production sharing agreements;

·         other agreements.

In case a land plot must be used in the scope of state-private partnership, the state partner provides the private partner with the possibility to use such land plot during a term determined by the agreement concluded as part of the state-private partnership (Article 8 of the Law).

Article 9 of the Law establishes that state-private partnership can be financed from the following sources:

·         financial resources of the private partner;

·         financial resources borrowed according to the established procedure;

·         funds of the state and local budgets;

·         other sources not prohibited by the legislation.

Article 13 of the Law envisages that the Cabinet of Ministers of Ukraine or a body authorized by it makes the decision to implement a state-private partnership in respect of state property objects, holds the competition and approves the competition results to choose the private partner.

According to Article 14 of the Law, a private partner for concluding the agreement (agreements) as part of state-private partnership is determined exclusively on a competitive basis, except in cases provided for by the law.

Article 18 of the Law establishes that state support of state-private partnership can be provided by the following means:

·         provision of state guarantees, guarantees of the Autonomous Republic of Crimea and of local self-government;

·         financing using the funds of the state of local budgets, and other sources, according to national and local programs;

·         in other forms provided for by the law.

The state guarantees adherence to the work conditions for private partners as established by the legislation of Ukraine, in relation to the fulfillment of agreements concluded as part of state-private partnership, as well as adherence to the rights and legitimate interests of private partners.

Private partners are entitled to compensation of damages incurred by them as a result of actions, inaction or inappropriate fulfillment of obligations provided for by the legislation of Ukraine, by the bodies of state power and local self-government, or their officials, according to the procedure established by the legislation of Ukraine (Article 20 of the Law).

Original