Business News, 20/01/2019

EU Helps to Improve Infrastructure Projects Management in Ukraine

The Ukrainian Ministry of Infrastructure, the Ministry of Regional Development, Building and Housing, the Ministry of Economic Development and Trade and the Ministry of Finance presented a Draft Complex Action Plan for reforming the infrastructure projects cycle management in Ukraine at the inter-ministerial meeting in Kyiv on January 18. This Plan was prepared with the support of the EU project “Assistance to the Ukrainian authorities for improvement of the infrastructure cycle management,” also abbreviated as ICPM.

“The EU and other donors are ready to support the rehabilitation of the Ukrainian transport network. To do this, we need not only proper framework legislation notably in the road and rail sector but also a reform of the system of how transport infrastructure projects in Ukraine are prepared and implemented. We are glad to support the Ministry and the Ukrainian government in promoting this,” Ambassador Hugues Mingarelli, the Head of the EU Delegation to Ukraine, stated.

The proposed reform will reduce the time and cost for implementation of infrastructure projects, will create their transparent, accountable and effective management in line with European best practice.

“As Ukraine lacks a sound basis for transport projects infrastructure cycle management, it is imperative to generate a proper reform. This will lead to substantial time and cost savings for infrastructure projects and will also create an accountable, transparent and effective system for infrastructure management. In today’s inter-ministerial meeting we discussed with the colleagues from the Regional Development Ministry and the Economy Ministry a series of solutions that should ultimately lead to the development of an efficient and sustainable transport system in Ukraine,” Volodymyr Omelyan, the Minister of Infrastructure of Ukraine, said.

The Complex Action Plan covers the legislative, administrative, operational, financial, and organizational issues. Namely, it identifies legal gaps to be filled in line with the requirements of the EU-Ukraine Association Agreement; promotes infrastructural projects in Ukraine developed in a socially and environmentally responsible manner; initiates training programmes for relevant ministries, agencies, state-owned enterprises and local authorities, etc.

Bernard Semeria, team leader of the EU project “Assistance to the Ukrainian authorities for improvement of the infrastructure cycle management,” indicated that the plan includes the development and adoption of legal and regulatory acts necessary to align Ukrainian legislation with the EU standards and practices. The new practical changes will directly impact the work of central and local authorities, state-owned enterprises and ensure the delivery of results and proper maintenance of their work in accordance to EU norms and standards on IPCM procedures.

Recall, for 2019, UAH 55 billion is allocated for road repairs and maintenance in Ukraine, out of which UAH 14.6 billion goes for local roads. Furthermore, on January 18, Kharkiv Observer reported that the European Commission had announced the plan to invest almost €13 billion into Eastern Partnership countries, including Ukraine, transportation system up to 2030. The plan foresees a total of 4,800 km of road and rail, six ports, and 11 logistics centers. By implementing the reform, Ukraine will unlock the ways to more efficient use of these resources, as well as to drawing more investment into the infrastructure projects.

Background information:

The IPCM project is funded by the European Union as a part of its continued support for the implementation of the Association Agreement. The project consults Ukrainian authorities about bringing Ukrainian transport and infrastructure legislation in compliance with the European one, infrastructure projects management, public investment management and alignment of Ukrainian technical standards in the transport sector with the European ones. The project is implemented by Corporate Solutions Consulting Ltd., UK, and SYSTRA SA, France, from September 2017 to July 2020. Its budget is €2.3 mln.

Source: EU Delegation to Ukraine

Photo: Ministry of Infrastructure of Ukraine