The law is important for Euro 2012 projects.
The Verkhovna Rada of Ukraine has canceled its decision of June 25 to endorse on the whole a law on the principles of the public private partnership, as the law turned to be incompatible with a number of other legislative acts.
With 226 votes required, 404 lawmakers voted to cancel endorsement of the law.
The cancellation law on the principles of PPP is related to uncovered inconsistencies between the law and other normative and legal documents, including the Land Code of Ukraine.
The law on the principles of PPP envisages legal frames of the national policy on public private partnership and basic principles of economic interaction between the public and private sectors on a contractual basis.
In particular, the public private partnership is defined as a contractual cooperation between Ukraine, the Autonomous Republic of Crimea, territorial communities (public partners), legal entities and sole-proprietors (private partners), except state-run and utility enterprises.
The public private partnership is appropriate in exploring, developing and extracting mineral resources; gas and heat supply systems, road industry; engineering, water supply and drainage, health protection, tourism, and waste processing.
The public and private partnership proves to be more technically and economically efficient than the public partnership itself.
Among the advantages of the public and private partnership are long-lasting ties (from 7 to 30 years); partial risk transfer to a private partner; a ban on transferring a part of the state-run property to a private partner within the partnership, and attraction of private partner’s investments into partnership facilities from legal sources.
The public private partnership is based on equality of both public and private partners to the law, bilaterally agreed interests to gain mutual benefits, and a competitive selection of a private partner.
Partnership facilities incorporate state-run and utility enterprises except those being under privatization.
The public private partnership may arrange contracts on franchise, joint business, product distribution etc.
As Ukrainian News earlier reported, the Verkhovna Rada on May 19, 2009, endorsed with 316 votes at the first reading a draft law on the principles of the public private partnership (No.3447-d). The parliament endorsed the law on whole on June 25.
