Business welcomes legal regulation of concession activities
On October 3, the Verkhovna Rada approved in the second reading and as a whole the draft law No.1046 on concession, aimed at improving the legal regulation of concession activity in Ukraine.
The European Business Association welcomes the adoption of legislation regulating public-private partnership mechanisms. For more than two years, the business community has developed its vision and provided suggestions on the practical aspects of concession activities. International practices demonstrate that concession is a reliable and effective method of attracting private capital to modernize and improve the use of infrastructure (seaports, river ports, roads, airports). At the same time, it is also an opportunity to replenish the state budget through concession payments – a share of income from private investors’ activity.
The undeniable positive of the adopted document is the fixation of the fact that forests are not subject to concession. We are grateful that the position of the business has been heard and taken into account, as the EBA Woodworking and Furniture Committee does not support privatization or concession in the forest industry. The idea of concession of any state natural resources contains corruption risks and can lead to monopolization of natural resources by private structures.
EBA experts awaited for the launch of a concession mechanism in Ukraine, the effective use of which, as expected, should solve the problem of depreciation of infrastructure, stimulate the use of Ukraine’s transit and export potential. We expect that the President will sign the Law as soon as possible.