Third CIS Local Counsel Forum Doing Business with the State- PPP Saint Petersburg, June 27, 2008...

Third CIS Local Counsel Forum

„Doing Business with the State- PPP“

Saint Petersburg, June 27, 2008

Wolfram RehbockArzinger & Partners

Business Centre “Iceberg”Zhylyanska str. 75

UA - 01032 Kyiv, Ukraine

Brave to be different

Content

I. What is PPP? II. Spheres of PPPIII. Pro & ContraIII. PPP in Ukraine

I. What is PPP?

Rumors PPP Law Risk sharing- „Who controls takes the risk”- principle Private administration of public tasks

II. Spheres for PPP

III. Pro & Contra

PRO CONTRA

Additional financial resources Optimized risk sharing Experience/Know-how/Efficiency (Business > Administration) Long during guarantee and best service Avoidance of corruption Compact solution • Financing & Know-how • Construction & Project Management • Operation & Service

Preparation more time-intensive Preparation more cost-intensive Lower credit rating

PPP versus Public Procurement

IV. PPP in Ukraine

1. Legislation

Draft of “PPP Law”

Redrafting of “Law on Concession”

Redrafting of “Law on Concession for Road Construction”

But: Do we need special legislation?

2. Difficulties

Shortage of time until 2012

Long-term partnership → public element in Ukraine unreliable

Municipal services → social policy versus price policy

Thank you for your attention and endless patience!