REALWorld Law


Public procurement

Are public private partnerships (PPPs) common? Are they promoted or encouraged by the government?



Public-private partnerships (PPPs) are not common in Ukraine. Relations between state/local bodies and developers are usually formalized by other legal instruments (eg investment agreements or joint activity agreements).

In 2010, the Ukrainian Parliament adopted the Law of Ukraine ‘On PublicPrivate Partnerships’ which sets out a list of activities for which PPP structures may be used, the main functions and forms of a PPP etc. However, in practice PPPs are rarely used in Ukraine (this form of collaboration was used in the construction of projects related to the EURO 2012 Football Championship and is currently used in complex infrastructure projects).

However, on 24 May 2016 the Law of Ukraine ‘On Amendments to Certain Laws of Ukraine regarding Lifting of the Regulatory Barriers for Development of Public Private Partnership and Stimulation of Investments in Ukraine’ entered into force. The aforesaid law broadened the list of privileges and guarantees for private partners (eg now the private partners can acquire into their ownership the objects created by them in course of PPP; the objects of PPP can also be in joint ownership of the public and private partners; disputes arising out of agreements on PPP concluded with participation of non-residents can be resolved by an international arbitral tribunal; in case of early termination of an agreement on PPP through fault of the public partner, the public partner is obliged to compensate to the private partner investments, non-reimbursed within the term of such agreement and damages, occurred due to early termination of the agreement on PPP).