REALWorld Law


Infrastructure and utilities

What arrangements are usually made with the local authorities and utility suppliers in relation to infrastructure (new roads, sewers etc) to support a new development?



For the period of construction, developers in Ukraine usually enter into temporary agreements with utility suppliers (water, electricity, sewerage etc) to secure the construction site with the utility services necessary for its construction needs. After completion of the construction works, the company which owns or manages the building enters into permanent agreements with utility suppliers.

On 20 September 2020 Ukrainian Parliament passed the law that amended the Law of Ukraine ‘On the Regulation of Town Planning Activity’. From 1 January 2020 till 1 January 2021 there is a transition period during which developers of residential and commercial projects shall pay share investment contribution for settlement's infrastructure under reduced rates (construction of industrial objects is released from paying such contribution). From 1 January 2021 all constructions projects will be released from paying the above contribution.