The President of Ukraine signed the “Law on concession” which was adopted on October 3, 2019 by the Parliament of Ukraine. The law aims to improve the legal regulation of concession operations in the sphere of public-private partnership.
The term “concession” currently determines a form of public-private partnership, which appears in the granting of rights for construction, repair, technical conversion, administration of concession objects, or delivery of services according to the terms of a concession contract, as well as handing over a large part of the operational risk.
The document will open up new opportunities for cooperation between the government and businesses. In turn, this will allow increased domestic and foreign investments in the Ukrainian economy and infrastructure development. Clear and transparent mechanisms for the selection of concession holders are determined and conditions for concession are set in accordance to international practice, such as warranties for the concession holder and creditor, or the right to exchange one concession holder for another.
Furthermore, the law introduces the opportunity to solve issues in international commercial or investment arbitrage, as well as a controlling procedure to monitor the fulfillment of the concession agreement. In general, agreements can be concluded for a minimum of five years and cannot exceed 50 years.
How can SCHNEIDER GROUP help?
If you would like to have more information on the legal regulation of concessions in Ukraine, please do not hesitate to contact us. SCHNEIDER GROUP legal experts in Ukraine will be ready to advise you on the most suitable forms and conditions of entering into concession in Ukraine.