Despite traditional privatization priorities in Ukraine, alienation of state strategic assets is often a controversial decision that is not always perceived by the public and experts. Due to this fact, the State is paying more and more attention to the promotion of public-private partnership (PPP) projects not involving transfer of ownership to state-owned property. Transport infrastructure, municipal infrastructure, power industry, and even culture and tourism are industries functioning on the basis of state property not subject to privatization. These and other sectors need to be developed on the basis of attraction of private investments and management experience.
State and municipal authorities are increasingly declaring promotion of public-private partnership projects in seaports and airports, water utilities and other municipal infrastructure facilities, as well as in cultural heritage facilities (architectural monuments). In the next decade we expect for considerable changes in the state investment policy, which will rely on the development of public infrastructure and public services on the basis of private-public partnership.
The AGRECA law firm possesses an extensive expertise in PPP issues, including those under conditions of concession, lease and joint venture. The experience gained by the firm lawyers in the course of preparation of investment projects, inter alia those based on state-owned property, the ongoing monitoring of specific legislation, the preparation of legislative proposals concerning public-private partnership, concession, and lease, as well as the active participation of the firm lawyers in the various specific working groups in the state authorities, the American Chamber of Commerce in Ukraine and the European Business Association allow the firm to plan and provide highly professional services in the course of implementation of public-private partnership projects.
AGRECA is also ready to support investment projects on the party of the state partner. The experience gained by firm lawyers in the State Property Fund of Ukraine and in cooperation with other state executive authorities and state natural monopolies such as the Ukrainian Sea Ports Authority and Ukrzaliznytsia helps us consider the specifics of functioning of state institutions and enterprises in the public sector. We are ready to provide legal services at all stages of public-private partnership projects implementation.
In the course of implementation of public-private partnership projects, we are ready to provide the following legal services:
- preparation of legal opinions concerning private-public partnership, including concessions, joint ventures with consolidation of investments (simple partnership) or without it, leases (assessment of advantages and disadvantages of investment mechanisms and forms for particular investment projects, assessment of terms and conditions of public-private partnership tenders, concession tenders, lease tenders, and risks identification and assessment);
- representation of investors’ interest in public-private partnership project tenders, including concession tenders (strategy development, project planning, legal audit of an object, preparation of legal documents for participation in a tender, negotiations and conclusion of an agreement);
- support of projects on execution of public-private partnership agreements and concessions (corporate issues, movement of staff, registration of land, establishment of a project company, transfer and registration of state assets and documentation, licenses and permits, legal succession etc.);
- representation of interests in the process of conclusion of lease agreements for state and municipal property (strategy development, legal audit of leased property, drafting of lease applications and documents for participation in a tender, conclusion of a lease agreement);
- participation in the preparation of a private finance initiative — offers of private companies regarding the implementation of investment projects based on public-private partnership (legal audit, preparation of legal sections of business plans and feasibility studies, development of complex structures of public-private partnership agreements including concession agreements, negotiations with potential partners including those with state authorities and enterprises);
- support of public-private partnership projects, including concessions, on the part of the state partner (legal audit, development of legal sections of feasibility studies, structuring of tender conditions, development of tender documents, evaluation of proposals and determination of the winner, negotiations and conclusion of the contract).
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