Public-Private Partnerships are long-term contractual arrangements between public-sector entities (e.g. a municipalities) and private-sector companies for the delivery of services, often associated with public infrastructure. The focus is on the provision of services, not assets, although any acquired or created assets would normally be transferred to the public partner at the end of the contract.

Public Private Partnership Development Program

Public Private Partnership Development Program (P3DP) is a �ve-year USAID program implemented by FHI Development 360, LLC, with the goal to promote public-private partnerships (PPPs) as a mechanism to improve communal services and infrastructure in Ukraine.

P3DP promotes a more positive PPP environment by pursuing four interre-lated objectives:

1) Enhancements to the legal and regulatory framework to create a legal environment of national level PPP laws, regulations, and resolutions that support PPP initiatives;2) Support for the national PPP Unit to enable engaging private sector suppliers in a manner that enhances the e�ciency and quality of public services and public infrastructure;3) Awareness and capacity development in P3DP pilot municipalities that want to implement and manage PPPs. This objective is ful�lled through study tours, training seminars, conventions, as well as public awareness programs to educate consumers on the bene�ts of engaging private sector players in the delivery of infrastructure and communal services;4) Implementation of pilot PPPs via providing assistance to pilot municipalities with all phases of preparing a PPP project all the way to taking pilot PPPs to the market through competitive tenders, meanwhile using the experiences gained as valuable feedback to further re�ne the PPP environment and processes in Ukraine.

Public buildings rehabilitation(kindergartens, schools)

Regulated parkingsystem in Lviv

Landfill ManagementPPP in Ivano-Frankivsk

Landfill ConstructionPPP in Vinnytsia

Regional LandfillConstruction PPPin Western Crimea Gagarin park PPP

in Simferopol

Healthcare PPPin Zaporizhia

Water and sanitation

Energy efficiency in public buildings

Since P3DP’s inception in 2010, it moved progressively forward in all four corner-stone objectives:

Objective 1: Promote a sound policy environment that fosters the development of PPPs

• Assisted development of the PPP Appraisal Methodology adopted by Ministry of Economic Development and Trade (MOEDT) for evaluating and approving PPP projects in Ukraine;• Supported the development of the National PPP Strategy and National Action Plan to be adopted in fall 2012; • Assisted the Government of Ukraine in reviewing and amending laws that impact PPP investment and in improving the environment to design, compete, award and implement PPPs in a manner that is consistent with international best practices;• Contributed to legislative and regulatory PPP reforms through active involvement in related Working Groups at several central government bodies.

Objective 2: Support a national PPP Unit • Assisted with defining governmental PPP Unit’s functions;• Defined the requirements and standards for PPP feasibility studies and transaction management;• Built internal management capacity at MOEDT through tailored in-house trainings;• Exposed central government staff to international best practices via three interna-tional study tours for Ukrainian o�cials to accumulate knowledge on international PPP best practices and PРP units functioning.

Objective 3. Awareness and Capacity Development • Conducted training seminars in pilot PPP cities for over 200 hundred representatives from government and private sector to introduce the bene�ts of PPPs and teach skills necessary to design economically, politically, and socially practical PPPs;• Organized PPP Forums for municipal and market leaders, including the first PPP Business Forum, which became a platform for discussing public-private cooperation under the PPP mechanism for the bene�ts of local economic development; • Carried out two international and one local study tours for the municipal representa-tives to learn international and Ukrainian experience of private sector involvement into delivering services, which are traditionally supplied by the public sector;• Organized a media study tour to familiarize mass media with PPPs;• Provided assistance for public awareness programs to educate consumers on the bene�ts of engaging private sector players in the delivery of infrastructure and communal services.

Objective 4. Identify and Develop Pilot PPP TransactionsAs of October 2012 the central focus of P3DP is on assisting with the startup of 6 potential PPP contracts covering inner-city parking management, municipal solid waste management, park management and medical service delivery. Additional municipalities will be added in P3DP’s phase II expansion of activities by the end of 2012. For the current pilot projects P3DP already: • Established formal development plans for the cities;• Developed Concept Papers for each of the 6 projects for discussion with respective municipalities;• Created financial models to be presented to the municipalities; • Worked with private partners to create competition for the pilot PPP projects via business seminar and market sounding events in pilot cities for potential investors and operators.

To better meet its goals P3DP has prepared and published several reports, which help to understand the speci�cs of the Ukrainian conditions and provide recommendations on the most effective and e�cient ways to create enabling environment for PPPs in Ukraine. • Analysis of the PPP legal framework in Ukraine;• Most critical issues for PPP enabling legal reforms in Ukraine;• Public-private partnerships and tariff regulation in the water, wastewater, and district heating sectors;• PPP Appraisal Methodology;• Baseline survey to gage consumer attitudes about private sector delivery of communal services.

44, Khreshchatyk st., 3rd �oorKyiv, 01001, Ukraine

Tel./Fax: +38 044 279 61 18OMaslyukivska@fhi360.org

This product is made possible by the generous support of the American people through the United States Agency for International Development (USAID). The contents are the responsibility of FHI Development 360, LLC and do not necessarily re�ect the views of USAID or the United States Government.