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UKRAINE PUBLIC PRIVATE
PARTERNSHIP DEVELOPMENT
PROGRAM (P3DP)
QUATERLY REPORT - Y1Q3
APRIL 1, 2011–JUNE 30, 2011 USAID Cooperative Agreement # 121-A-00-10-00708-00
July 2011
This document was produced for review by the United States Agency for International Development.
It was prepared by FHI Development 360 LLC under the Public-Private Partnership Development
Program in Ukraine.
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Ukraine Public Private Partnership Development (P3DP) Program
1. Executive Summary
2. Work Plan Tasks During the Reporting Period (focusing on the expected tasks that are explicit
in the Work Plan, including cross-cutting items – the implicit tasks are typically covered in 3
below)
3. Other Activities During the Reporting Period (implicit and unplanned tasks that occur during
the reporting period)
4. Work Plan Tasks for Coming Reporting Period (a “heads up” for the reader as to what to
expect next quarter – essentially, this is where the official Work Plan gets incrementally migrated
with new information, etc.)
5. Administrative and Managerial Issues (this would cover activities like contractual issues, draft
SOWs for upcoming STTA, particularly if the work was cross-cutting in nature)
6. Exceptional Issues (items here are a. beyond the “heads up” of 4 above, b. a “hook place” for
potential future concerns2, c. visits by guests
3, d. updates from intelligence gathering
4, etc.)
7. Attachments
a. Photos and Captions
b. P3DP MindMap of Resource Allocations and Management Plan (updated)
c. Report on the Study Tour to Croatia
d. Projects presentation to USAID, May 31, 2011
e. Excerpt from qualitative evaluation, presented to USAID, May 31, 2011
f. P3DP PPP Potential Pilot Cities
g. Activities Schedule from draft Revised Work Plan for Year 1
1 FHI Development 360 LLC (FHI 360) is the successor organization (as of July 1, 2011) to AED, the original
Cooperative Agreement partner with USAID. 2 …constrained access to information, etc.
3 …such as security people or US congressional delegations, etc.
4 “…the head of X is rumored to be resigning,” “…there may be exceptional issues with municipality Y,” etc.
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1. Executive Summary
Program activities began in earnest in the third quarter of Year 1 (Y1Q3) following the April 13, 2011
accreditation of the Public Private Partnership Development Program (P3DP) by the Ministry of
Economic Development and Trade (MOEDT). Obtaining legal approval to function as a donor program
in Ukraine thus allowed P3DP to employ local professional staff, deliver direct assistance and engage in
formal relationships with GOU’s central executive bodies, including Ministries, Agencies and
Administrative Units. P3DP also received key agreements with USAID important to advancing program
operations. USAID approved the following key management positions: Larry Hearn, DCOP and Director
of Professional Services; Tatiana Korotka, Manager of GOU Development Services (“key personnel”);
and, Ruslan Kundryk, Manager of Legal Affairs (“key personnel”). USAID concurred with P3DP’s
selection methodology identifying six cities and projects as “high-potential” prospects5 to be PPP pilot
projects. P3DP reached agreement with both USAID and MOEDT on the program’s “Activities
Schedule”, thus setting the stage for formal approval of P3DP’s Work Plan for Year 1 and the associated
PMP. The difficulties in reaching Y1Q3 milestones, normally expected during the first 6 months of
typical USAID program startup, highlight the impact of delayed accreditation due to the cumbersome
bureaucracy in Ukraine. Similar bureaucratic obstacles facing private sector businesses are a main reason
why Ukraine was ranked 142 out of 159 in the World Bank’s “Ease of Doing Business Indicators” 2010
report.
The end of the quarter marked the end of Academy for Educational Development (AED) as the
implementer of the USAID-funded P3DP Cooperative Agreement. Gregory Niblett, President & CEO of
AED made the initial public announcement on June 8, 2011, that AED’s Board of Directors chose Family
Health International (FHI) to acquire substantially all of AED’s assets. The Cooperative Agreement for
P3DP, along with most of AED’s other contracts and awards, was “novated” to an FHI subsidiary, FHI
Development 360 LLC (FHI 360), effective July 1, 2011. While this transfer of ownership is expected to
have no impact on P3DP’s in-country operations, it will have a positive impact on P3DP home office
assistance by improving and streamlining home office management and administrative support. During
the suspension and acquisition process, there were several shifts in staffing at AED headquarters resulting
in changes to home office management. However in June, Jason Czyz was made the permanent home
office project director; he is a infrastructure attorney and speaks Russian.
Political instability impacting the PPP environment in Ukraine was similarly dramatic. Unresolved
pending GOU Ministerial reorganizations have caused an air of caution across many governmental
entities. Mr. Maksiuta, First Deputy Minister of MOEDT, who was the “lead” GOU counterpart for
P3DP, was reassigned to other duties, and no formal meetings have occurred with his successor as of the
end of this reporting period6. Two Presidential Decrees were released (#583/2011 and #634/2011)
addressing shifts in PPP responsibilities between "The State Investment and National Projects
Management Agency" (National Projects Agency or NPA) and MOEDT. Although the full implications
of these pronouncements are not fully understood, the opinions of many Ukrainian leaders are that these
decrees effectively transfer substantial areas of PPP responsibilities to the National Projects Agency, thus
reducing the MOEDT's span of influence in regulating, monitoring and implementing PPP transactions in
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The six initial cities selected as high-potential prospects are: Lviv city parking management, Zhytomyr waste
sorting and recycling plant, Voznesensk waste sorting and recycling plant, Evpatoria sport facilities, Poltava district
heating, and Trostyanets waste sorting and recycling plant
6 On the GOU website, it is noted that three other Deputy Ministers of MOEDT (Valeriy Piatnizkiy – previously
responsible for EU integration and International Technical Assistance coordination; Iryna Kryuchkova -previously
responsible for Macroeconomic aspects, GDP, Socio-economic Development Program of Ukraine, etc.; and Vasil
Marmazov - previously responsible for issues not relevant to P3DP) have been relieved of their previous duties as of
July 15, 2011, as part of the overall implementation of previously announced staff restructuring under the recent
GOU administrative reform implementation.
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Ukraine. Almost everyone agrees that the amount of PPP authority subsumed by the National Projects
Agency is substantial. Therefore, P3DP's relationship with the MOEDT may be changing as well in that
it may not be the sole P3DP beneficiary with at least some activities being more closely planned and
coordinated with the National Projects Agency. P3DP’s Senior Managers anticipated the shift in
institutional influence over PPP development and strengthened bonds with senior level positions at the
National Projects Agency, including the Agency’s Head, Mr. Vladyslav Kaskiv, and Director of
International Relations, Mr. Igor Zhovkva; and, “Clean Cities” Project Head, Andriy Ortozey and Deputy
Bogdan Balasinovych. Another key relationship was strengthened as well during the quarter, with P3DP
management building formal ties with the Verkhovna Rada (VR) Public Private Partnership (PPP)
Committee under the leadership of Ms. Natalia Korolevska, who extended an offer for two of P3DP’s
Technical Managers to become participants in the VR PPP Committee.
P3DP’s strategy to be a visible presence in PPP development, build professional relationships, and
identify sources of industry sector technical knowledge was advanced by its representatives participating
in high-level PPP workshops and seminars, including:
Presentation on Investment Reform sponsored by the National Projects Agency and chaired by President Viktor Yanukovych
Sustainable Municipal Solid Waste Management in Eastern Europe, organized by the Department of Geography of Taras Shevchenko National University of Kyiv
The Seventh Financial and Economic Forum, Strengthening the Financial Capacity for Local Development, sponsored by the Institute for Budgetary and Socio-Economic Research (IBSER)
Improvement of Effectiveness of Waste Management in Ukraine, sponsored by the International Finance Corporation (IFC)
4th Annual PPP in CEE7 and SEE8 Summit, organized by Fleming Europe
As a result of preplanning and stage setting in the first two program quarters, P3DP was able to move
rapidly after accreditation to implement program initiatives. Three of the most significant being:
1) Gide Loyrette Nouel (GLN), an internationally recognized legal firm based in Paris, France, with an office in Kiev, was contracted to conduct a diagnostic of the PPP legal environment in
Ukraine.
2) After extensive visits to multiple cities throughout Ukraine, P3DP staff recommended to and received concurrence from USAID for six high-potential cities as potential partners in PPP pilot
projects. By achieving high-potential status, these cities are targets for capacity development and
other PPP project-related support.
3) P3DP organized two study tours for Ukrainian national level participants to obtain perspective of PPP Unit operations within the Region. The first study tour to Zagreb, Croatia included 12
Ukrainian governmental officials involved in PPP development in Ukraine. In Croatia, the group
was hosted by the Croatian Agency for Public-Private Partnerships (APPP). The second study
tour will be to St. Petersburg in July-August.
Other notable administrative and programmatic activities pursued and achieved during Y1Q3 operations
included the following:
Date Activity
April 8, 2011 During this week, received confirmation that MOEDT had no additions to the
P3DP Work Plan for Year 19
April 11, 2011 Physical occupancy of permanent office space at 44 Khreschatyk
April 22, 2011 Received accreditation (dated April 13, 2011) for P3DP from MOEDT
7 Central and Eastern Europe
8 South-Eastern Europe
9 USAID had allowed the sharing of the P3DP Work Plan for Year 1 with MOEDT on March 30, 2011.
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May 3, 2011 First long-term P3DP local employee contracts executed
May 2, 2011 Initiated follow-on meetings during the week with Kyiv City State
Administration on prospective PPP pilot project opportunities
May 11, 2011 Received approval from USAID for planned study tours to Croatia and Russia
May 13, 2011 Formally distributed the proffered MOEDT Action Plan for review, and held
discussions with MOEDT of this annually updated document
May 25, 2011 Confirmation from USAID re inclusion of the draft MOEDT Action Plan items
in the pending update of the P3DP Work Plan for Year 1
May 31, 2011 Received USAID approval to continue engaging the recommended 6 potential
PPP pilot projects winnowed from a list of 22 initially considered cities
June 6, 2011 Completed TA to MOEDT regarding its Public-Private Partnership (PPP) State
Aid Form
June 8-10, 2011 P3DP represented at PPP Conference in Prague, Czech Republic
June 10, 2011 Completed TA to MOEDT regarding its PPP Application (project idea) Form
June 20, 2011 Furthered TA to MOEDT by agreement on TOR for Appraisal Methodology
June 22, 2011 Executed contract with Gide Loyrette Nouel re review of the PPP legal
environment in Ukraine
June 27-28, 2011 Consummated PPP Study Tour to Zagreb, Croatia for 12 GOU officials
Throughout Y1Q3 Consultations in 12 additional potential PPP pilot project cities10
As can be determined from the above table, P3DP’s preliminary activities of Y1Q1 and Y1Q2 have
resulted in sound progress in the field in Y1Q3 with both counterpart personnel and potential PPP pilot
project initiatives. Further progress should be accelerated when Implementing Partner resources become
available to augment the P3DP staff contributions.
2. Work Plan Tasks During the Reporting Period
Though P3DP accreditation was not received until April 13, 2011, significant pre-planning and staging
efforts continued with available short-term consultants and local contract consultants (acting as staff until
their shifting to long-term program employee status beginning in early May).
P3DP continued to support the home office in pursuit of critical sub-agreement development with its
identified Implementing Partners:
1. Ukrainian Public Private Partnerships Development Support Center (PPPDSC) 2. Institute for Budgetary and Socio-Economic Research (IBSER) 3. Kyiv Economic Institute (KEI) 4. Association of Ukrainian Cities and Communities (AUC) 5. East Europe Foundation (EEF) 6. Agrarian Markets Development Institute (AMDI)
Priority was placed on PPPDSC and KEI documentation and negotiations, with secondary attention being
provided to EEF and AUC, supporting a targeted resolution of these sub-agreements in Y1Q4. IBSER
assistance levels are to be determined in greater detail in the coming months as both program and PPP
pilot project needs are understood to a greater depth.
During the week of April 18, 2011, Mr. Norman Sheehan – home office Global Security Director came to
Kyiv to perform a security review of the permanent P3DP offices and provide briefings and
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In addition to the cities of Trostyanetx and Vinnitsya previously visited in Y1Q2, representatives of the cities of
Rivne, Slavutych, Voznesensk, Kyiv, Lviv, Ternopil, Boryspil, Poltava, Cherkassy, Drogobych, Odessa and Yuzhnoe
were visited during Y1Q3. Cities in the Autonomous Republic of Crimea are scheduled to be visited in earlyY1Q4.
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documentation to P3DP staff on security procedures and practices. Mr. Sheehan’s recommendations are
being implemented as envisioned.
Attachment 7a, Photos and Captions, depict major steps of P3DP engagement with potential
municipalities (and their related PPP pilot projects) and activities related to the initiation of the first P3DP
study tour out of Ukraine for GOU officials. Attachment 7b, updated P3DP MindMap of Resource
Allocations and Management Plan, identifies P3DP staff (now under local employment contracts) and
envisioned inter-relationships of P3DP program resources.
Objective 1
Exchanges of information with potential Implementing Partner representatives supporting Objectives 1
and 2 continued throughout the reporting period, with expectations of potential sub-agreements being
formulated and executed by the end of the quarter. However, various administrative clarifications and
required supporting documentation had not been completed by the parties by this time. It is intended that
these activities will reach successful conclusions in Y1Q4.
Issues related to evaluation of the bid proposals (received in Y1Q2) for technical assistance to provide a
legal review of enabling and related legislation in Ukraine regarding PPPs were resolved, and by April 22,
2011, USAID had concurred with the P3DP recommendation that the purchase order be awarded to Gide
Loyrette Nouel (GLN), headquartered in Paris, France. Home office personnel began completion of all
internal approvals and creating the necessary procurement documentation the week of April 18, 2011.
During the intervening period, updates were required to reflect the resulting schedule expectations, and
the contract, with a start date of July 5, 2011, was formally forwarded to GLN for execution on June 22,
2011. Certain background documentation was prepared by the P3DP staff and forwarded to GLN project
leader John Crothers on June 24, 2011, followed by various communications between P3DP and GLN to
arrange for the initial interview meetings to be conducted in Kyiv in early July.11
The assignment consists
of carrying out, in the light of international good practice, a diagnostic review of the legal and regulatory
framework for PPPs in Ukraine with a view to identifying significant obstacles, deficiencies, and problem
areas that could inhibit or constrain the development, procurement, financing, or implementation of sound
and bankable PPP arrangements.
By June 1, 2011, Ruslan Kundryk had been approved by USAID per “key personnel” requirements of the
Cooperative Agreement (CA) and joined the P3DP staff on a full-time basis as the Manager of Legal
Reform Activities (MLRA). During the month of June, Mr. Kundryk initiated several joint meetings of
legal and other entities of interest in the PPP arena and began providing legal and joint-planning
assistance to other P3DP initiatives, based and building on his previous experience in providing similar
support to the USAID-funded Municipal Heating Reform Project through its local subcontractor, the
Municipal Development Institute.
Objective 2
Liaison activities with MOEDT continued through the period with resolution of all MOEDT comments
regarding the P3DP Work Plan for Year 1 and the issuance by MOEDT of the accreditation
documentation for P3DP. P3DP and MOEDT representatives embarked on review and finalization of
items and dates appearing in the MOEDT Action Plan, the continually-evolving, annually-updated
summary of MOEDT’s PPP activities.12
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These meetings took place the week of July 11, 2011, with representatives of eleven relevant organizations outside
of P3DP. 12
In July, P3DP and USAID agreed to include the MOEDT Action Plan activities as appropriate in the Activities
Schedule of the revised P3DP Work Plan for Year 1.
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Emerging issues re-defining GOU-designated PPP responsibilities came to light during the reporting
period by the issuance of Presidential Decree #583/2011 on May 12, 2011 defining certain PPP roles for
the NPA, and Presidential Decree #634/2011 on May 31, 2011, further defining certain PPP roles for the
MOEDT. Neither organization appears to have a clearly defined mandate – particularly with regard to
whatever boundary definition there may be between the roles and responsibilities of these two GOU
entities. P3DP continued to build an understanding and working relationship with NPA management,
including the initial drafting and vetting of a Memorandum of Understanding (MOU), similarly styled13
to
the MOU previously executed with MOEDT. At a minimum, it is expected that P3DP will deploy
resources in support of the contemplated NPA “PPP Coordination Center,” and it is hoped that P3DP will
benefit from access to the several Oblast office resources as offered by NPA management.
In support of capacity-development in general and decision making in particular, a study tour to Zagreb,
Croatia was arranged with that country’s “PPP Unit” for the tour days of June 27-28, 2011. Under the
oversight of two P3DP staff (the Manager of GOU Development Support and the Operations and Senior
Project Coordinator), twelve GOU officials14
participated in the tour, which included participation in
workshops given by various Croatian PPP leaders, followed by a second day of site visits to several
operational PPPs. The group was officially hosted in Zagreb by the Croatian Agency for Public-Private
Partnerships (APPP). The purpose of this study tour was to introduce the participants (all stakeholders in
the design and successful operationalizing of PPP activities in Ukraine) to successful “PPP Unit” and PPP
project operations, including the various functions, roles, responsibilities of the several parties in order to
help them formulate ideas about the structure of PPP unit responsibilities in Ukraine. Participants
completed a comprehensive evaluation and information gathering form at the close of the trip, which will
be the basis for follow-on activities in Y1Q4, as well as being informative to the administrative and
technical design of subsequent similar capacity development study tours.15
See Attachment 7c for the
report on the “Study Tour to Croatia.”
Throughout the reporting period, three specific MOEDT technical assistance requests were being pursued
by P3DP staff and consultant efforts, resulting in the submittals of two documents to MOEDT (proposed
forms for PPP “application” and for “state aid request”) and, after acceptance by MOEDT, the third (a
Terms of Reference for PPP Appraisal Methodology development) to the home office for procurement
action. The procurement is expected to be released in early Y1Q4. Additionally, P3DP representatives
routinely update MOEDT on the status of various municipal visits and potential PPP pilot projects.
By June 1, 2011, Tatiana Korotka had been approved by USAID per “key personnel” requirements of the
Cooperative Agreement (CA) and joined the P3DP staff on a full-time basis as the Manager of GOU
Development Services (MGDS). During her previous consulting contract and subsequent employment
status, Ms. Korotka represented P3DP in joint meetings with MOEDT and NPA, based and building on
her previous employment experience within the GOU.
Objective 3
In keeping with previous quarter practice, the P3DP Manager of Awareness and Capacity Development
(MACD) accompanied the Manager of Transaction Services on exploratory trips to potential PPP pilot
13
The “style” of an MOU to be executed between a USAID project implementer and its counterpart was prescribed
by USAID, with unique technical information to be added by the implementer to more definitively represent the
appropriate envisioned relationships. 14
The GOU officials included representatives from the MOEDT, Ministry of Finance, Ministry of Housing and
Communal Services, National Projects Agency, and experts from the PPP Interagency Working Group. 15
An additional study tour is planned for July 31 – August 3, 2011 to St. Petersburg, Russia.
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project municipalities and to various events where numerous potential PPP project stakeholders were in
attendance. The primary MACD role during these trips is to assess the current levels of awareness and
knowledge exhibited by those observed to be used in planning for awareness and capacity development
initiatives and in the development and drafting of the P3DP Communications Plan, the first draft of which
is scheduled to be completed in early Y1Q4.
Further clarifications of program descriptions, potential personnel and related budgets for identified
Implementing Partners (envisioned to be EEF and AUC) to assist with Object 3 (and Objective 4)
implementation continued during the quarter, including sub-agreement development discussions with
various representatives at the home office. It is expected that the issues will be clarified in early Y1Q4
with sub-agreements to be executed later in the quarter.
By June 1, 2011, Olena Maslyukivska joined the P3DP staff on a full-time basis as MACD. During her
previous consulting contract and subsequent employment status begun in this period, Ms. Maslyukivska
represented P3DP (a) in numerous visits to municipalities having potential PPP pilot projects, and (b) by
delivering several presentations at events organized by other USAID projects and local organizations,
based and building on her previous employment experience with the previous USAID-funded PPP
training project and her years of academic leadership.
Objective 4
By May 16, 2011, Valeriy Dobrovolskiy joined the P3DP staff on a full-time basis as the Manager of
Transaction Services (MTS). During his employment status begun this reporting period, Mr.
Dobrovolskiy represented P3DP in (a) numerous visits to municipalities having potential PPP pilot
projects, and (b) several events organized by other USAID projects and local organizations, based and
building on his previous employment experience in the financial and investment services arena in
Ukraine.
The MTS and the MACD, using the draft selection criteria previously discussed with USAID in Y1Q2,
continued their series of preliminary assessments of potential PPP pilot projects in Y1Q3. On May 31,
2011, a presentation was made by the MTS and the MACD to USAID officials in which the 22 possible
projects under consideration at that time were shared and the necessarily-qualitative evaluation
methodology and results were discussed. P3DP recommended continued assessment activities with six of
the 22 possible projects (See Attachment 7d for the potential PPP pilot projects presentation and
Attachment 7e for an excerpt from the qualitative evaluation matrix shared during these discussions).
USAID concurred with the continued use of P3DP resources to further define, assess and develop these
PPP pilot project possibilities leading to the more formal engagement of at least two of these projects by
the end of Y1. P3DP awaits confirmation from USAID for scheduling a similar presentation to USAID
“front office.” The presentation, however, will be updated as additional potential municipalities/projects
continued to emerge.
Information and data regarding the ever-growing number of potential PPP pilot projects (and related
municipalities) have been identified in Y1Q3. See Attachment 7f for the latest edition of the “P3DP PPP
Potential Pilot Cities” tracker wherein 43 cities have been discussed/considered, and 31 of these remain in
some form of planned continued evaluation as of the date of publication of this report.
3. Other Activities During the Reporting Period
P3DP contract staff and consultants continued to participate in relevant discussions and events throughout
the quarter. Most of these were associated with other USAID project activities, GOU/MOEDT activities,
events and discussions with proposed Implementing Partner representatives, etc. Beginning on May 3,
2011, the first full-time local employment contracts were issued for four persons. By the end of the
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period, ten local long-term staff had been contracted to join the two expatriate staff. All appropriate
paperwork with the General Directorate for International Representative Offices (GDIP) had been
executed to support the hiring/paying of local staff, and banking arrangements were put in place after
receiving P3DP accreditation during the period.
Jason Czyz completed a productive advisory and consultative trip to Kyiv over the period of June 19-30,
2011. Additional, proactive oversight of the movement of reviews, approvals and support provision
through the home office continues to improve. As evidenced by progress made through the date of this
report, it is envisioned that the levels of productivity and P3DP support from the FHI 360 home office
will continue to increase in the coming quarters.
P3DP continues to seek to standardize its use of certain other terms during the period of the Cooperative
Agreement (CA) in order to promote more accurate communications and understandings among all
parties. To that end, the following definitions are under use with P3DP and its partners:
a. “Public-Private Partnerships” for purposes of P3DP - Public-Private Partnerships occur when public sector entities and private sector entities enter into long-term, comprehensive contractual
arrangements for either (a) the development of public infrastructure and its on-going related
public services or (b) the delivery of social services; and for the transfer of significant risks and
provision for performance rewards to the private sector entities. This term will be abbreviated
“PPP” in oral and written communications.
b. “Program” to be used when referring to P3DP – to attempt to avoid confusion when using a short-form referral to P3DP, the word “program” [rather than “project”] will be used in oral and
written statements.
c. “Project” to be used when referring to a PPP project (contemplated or actual) – similar to the above reason, the word “project” will be used in oral and written statements when referring to an
initiative which may become or is a PPP project.
d. “Implementing Partner” – with reference to the updated MindMap included as Attachment 7b, a P3DP “Implementing Partner” is an entity with which P3DP will have a standing formal scope
of work defined that will directly contribute to the integrated execution of CA initiatives. This
relationship is characterized by a mutual, long-term commitment between P3DP and the entity.
e. “Resource Partner” – with reference to the updated MindMap included as Attachment 7b, a P3DP “Resource Partner” is an entity with which P3DP may/will call upon from time to time for
targeted execution of some service or development of one or more deliverables. This relationship
is characterized by a short-term contract [purchase] between P3DP and the entity.
f. “MOEDT Action Plan” – the ever-evolving, annually updated tabulation of MOEDT’s PPP activities. Many of these activities will be reflected in the Activities Schedule of P3DP as it is
intended to provide technical assistance to MOEDT in various ways.
g. “Strategy Implementation Plan” – the document embodying the long-term implementation initiatives of the GOU in the broad arena of PPP development. This document was previously
referred to as the “PPP Action Plan” in the P3DP CA with USAID.
4. Work Plan Tasks for Coming Reporting Period
Attachment 7g is the Activities Schedule excerpted from the latest draft of the Work Plan for Year 1. This
schedule has been approved in principal by USAID (and supported by MOEDT) by the date of the
drafting of this report. Of significance during the coming reporting period are:
a. P3DP will finalize and seek approval from USAID on its Work Plan for Year 1 and the associated Program Monitoring Plan (PMP). With the execution of a sub-agreement with the intended
Implementing Partner responsible for P3DP quarterly statistical reporting, the development of the
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Performance Indicator Reference Sheets (PIRS) for each of the Program Objective Indicators
(POIs) will be completed and submitted to USAID.
b. An updated budget, per Cooperative Agreement requirements, will be provided to USAID in conjunction with the finalization/approval of the Work Plan for Year 1.
c. Certain modifications to the Cooperative Agreement may be identified, developed and suggested to USAID, including those to clarify evolved issues, to update the budget, etc.
d. The P3DP Communications Plan and an update to the approved Branding Strategy and Marking Plan for P3DP are expected during the period in order to comport the evolved use of certain
terms.
e. Conduct 90-day local employee reviews to assure that there is a high level of joint understanding of roles and responsibilities among the P3DP staff members.
f. Help to support and assure the timely completion of necessary actions to effect the implementation implications of the novation of obligations from AED to FHI 360.
g. Conclude sub-award terms and sub-agreements with Implementing Partners:
Based on the MOUs previously executed and subsequently proffered program descriptions from
potential Implementing Partners, P3DP will seek to conclude sub-awards with Implementing
Partners:
1) Ukrainian Public-Private Partnership Development Support Center (PPPDSC) 2) Association of Ukrainian Cities and Communities (AUC) 3) Institute for Budgetary and Socio-Economic Research (IBSER) 4) East Europe Foundation (EEF) 5) Kyiv Economic Institute (KEI)
h. Initiate baseline gender assessment by issuing the TOR and identifying the TA provider to conduct the assessment work.
i. Initiate baseline survey development and execution once the sub-agreement has been executed as contemplated with the responsible Implementing Partner.
j. Oversee and support the work of GLN in its review of the legal environment defining the PPP arena in Ukraine, culminating with a presentation to USAID and GOU officials as currently
planned for late September.
k. Assist the GOU in the drafting of a “PPP Strategy” – a short, high-level document to include the GOU policy, vision and goals vis-à-vis development of the use of PPP projects in Ukraine.
l. Begin serving in and gaining support through P3DP representatives’ memberships in the MOEDT PPP Interagency Working Group and the VR PPP Committee.
m. Initiate various STTA actions to include (i) the continued support from a PPP technical expert; (ii) TA for the development of an Appraisal Methodology for with the TOR was written in Y1Q3; (iii)
TA for tariff and regulation assessment assistance in the area of municipal heat provision; (iv) one
or more technical discipline consultants to assist with both assessment and capacity development
related to sectoral (water, waste water, municipal solid waste, district heating, etc.) potentials for
PPP pilot project development in Ukraine.
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n. Conduct study tours to St. Petersburg (regarding PPP Unit design considerations) and perhaps to one or more cities in Poland (regarding assessment of successful PPP projects that might be
replicable in the Ukrainian legal and governmental environment). Conduct post-tour activities to
assure that knowledge gained from the trips is captured as part of the future resources need to
develop the PPP environment in Ukraine.
o. Support GOU entities and representatives in the development of appropriate administrative bodies to conduct assigned functions of GOU PPP development.
p. Support GOU entities and representatives in the area of conferences and workshops to enhance understanding of PPP issues across multiple types of potential PPP stakeholders.
q. Design and deploy initial capacity-development and pilot awareness campaigns and associated materials as appropriate to support PPP pilot project initiatives and the broader level of PPP
awareness across Ukraine.
r. Continue to identify and preliminarily assess possible PPP pilot projects and associated municipalities.
s. Prepare, design and conduct a “market sounding” event for potential PPPs.
t. Support the further definition of targeted potential PPP pilot projects to include the development of full Project Identification Briefs, the provision as appropriate of sector-specific TA, the
provision of PPP and legal expert TA in direct support of development of needed documentation,
and the more formal engagement of selected municipalities in PPP pilot project implementation
activities, such as the execution of feasibility studies and the expectations associated with
transaction development and management.
u. Continue development of understanding and relationships with both international and Ukrainian financial sector entities to define their potential interests and capabilities in financially supporting
PPP pilot projects.
v. Respond to requests from USAID and P3DP beneficiaries as may be appropriate under the P3DP CA.
w. Draft and submit the P3DP Annual Report for Year 1.
5. Administrative and Managerial Issues
With receipt of accreditation on April 13, 2011, P3DP became able to open its bank account and to
formalize its agreement with GDIP to service the expected local employee staff once hired. Beginning on
May 3, 2011, the first set of employment agreements were executed with those persons previously
providing support to P3DP under local consultant contracts. By May 31, 2011, these and subsequent staff
members under employment agreements were able to receive their salary payments from GDIP. The 90-
day evaluations of virtually all of the local staff will occur during Y1Q4 with only a few staff positions
remaining to be filled.
The initiation of program operations from its long-term offices at 44 Khreschatyk in Kyiv has included
the acquisition of phone and temporary internet services, and the acquisition of IT equipment is almost
complete. Similarly, procurement of a program vehicle is underway.
12
USAID approvals in Y1Q2 resulted in the securing of Larry Hearn as Deputy Chief of Party (DCOP) for
a period of one year from his mobilization. Having served P3DP in an STTA capacity during the previous
two quarters, Mr. Hearn brings additional management oversight to P3DP during its critical ramp-up of
technical assistance provision. Mr. Hearn was able to secure his C-1 visa in the US on May 16, 2011,
prior to his mobilization to Kyiv on May 26, 2011.
During this reporting period, activities seeking to remedy earlier problems with timely securing of a C-1
visa for Mr. Alan Pieper, Chief of Party (COP) were successful, and arrangements were made such that
Mr. Pieper can acquire his visa from the Ukrainian Embassy in Rome, rather than his having to travel
back to the US to do so. This trip is scheduled for early-Y1Q4.
As formally announced on June 8, 2011, FHI and AED agreed to an acquisition by FHI of substantially
all the programmatic, personnel and certain other assets of AED. This acquisition resulted in the creation
of FHI Development 360 LLC into which the former AED assets and certain other FHI assets were
transferred. The various USAID-funded contracts and cooperative agreements previously awarded to
AED were “novated” to the newly-created entity, which is branded as “FHI 360” for reference. This new
entity essentially began P3DP oversight and support on July 1, 2011.
6. Exceptional Issues
From time to time, P3DP will become aware of issues that bear noting or watching for potential current or
future program impacts. This section of the Quarterly Report documents these issues so that applicable
parties will be cognizant of potential impacts.
During Y1Q3, P3DP notes the following:
a. Significant alterations to previously-assumed roles of GOU entities with respect to the PPP arena raise questions on the original USAID-envisioned counterpart relationships as implied in the
Cooperative Agreement. In addition to those issues raised in the previous quarter regarding the
emergence of an active committee under the Verkhovna Rada, two new Presidential Decrees were
issued during Y1Q3. These two decrees (issued in May 2011) appear to attempt to provide more
details as to the “re-delegation” of roles and responsibilities vis-à-vis PPPs between MOEDT and the
National Projects Agency. However, as of the end of the reporting period, neither entity (nor any
other engaged party with which P3DP has communicated) is in full agreement on such delegations or
the resulting implications. Regardless of the ultimate outcomes of the intentions of these decrees,
P3DP sees additional benefit to the program for formally engaging the National Projects Agency, and
an MOU is being prepared (patterned after the USAID-provided format previously used for preparing
such an MOU with MOEDT) to execute with the National Projects Agency in Y1Q4. Additionally, it
is intended that P3DP registration/accreditation documentation be updated in Y1Q4 to reflect that the
National Projects Agency is a beneficiary and a recipient of P3DP technical assistance.
b. By presidential decree on June 30, 2011, Mr. Volodymyr Pavlenka was appointed in the vacated position of P3DP former counterpart, Mr. Maksiuta. It is not known the degree to which Mr.
Pavlenka has been briefed on P3DP issues, not is it known the degree of knowledge or interest he has
in the area of PPPs, as no meetings occurred with Mr. Pavlenka prior to the end of the period. As of
the end of the reporting period, GOU had yet to formally announce the formation of a “PPP Unit” –
either in MOEDT or the National Projects Agency. It is speculated that each entity will eventually
have some “unit” within its organizational structure that will be designated certain responsibilities for
PPP issues. Both of these potential units will likely seek to benefit from technical assistance that
P3DP is to provide under the spirit of the Cooperative Agreement.
c. The CMU Resolution #611 (dated June 06, 2011) “On Procedure of State Guarantees Issuing…” came into force. This regulation contains the procedures for issuing guaranties to ensure the debts of
13
enterprises involved in national investment and other development projects. It is not known the
extent to which these “guarantees” may be available to municipalities in support of municipal level
PPP pilot projects.
14
7. Attachments
a. Photos and Captions
Valeriy Dobrovolskiy (center), P3DP Manager of Transaction Services (Objective 4), discusses
potential pilot projects in Ternopil with the Mayor of Ternopil, Mr. Serhiy Nadal (left) and Mr.
Ihor Hirchak (right), Executive Director of the Association of Ukrainian Cities.
Olena Maslyukivska, Manager of Awareness and Capacity Development (right) interviewing the
Mayor of Yuzhnokrainsk, Mykolaiv region, Mr. Andriy Onosov, during a break at the 7th
Ukrainian Municipal Forum held in Illichevsk, June 30-July 2, 2011.
15
Alan Pieper, P3DP COP and Olga Petrenko, P3DP Operations and Senior Project Coordinator
conduct the first pre-departure briefing with some of the designated participants for the Study
Tour to Zagreb, Croatia.
Example of existing rolling stock in Lviv which may be part of a potential PPP pilot project
through which the Lviv administration is planning various transportation improvements in
services to its city’s residents and visitors.
16
b. P3DP MindMap of Resource Allocations and Management Plan
The following is an updated MindMap of Resource Allocations and Management Plan for P3DP, noting
the implications of the difference between “Implementing Partner” and “Resource Partner” entities.
17
b. Report on the Study Tour to Croatia
Beginning below and following is the report entitled “Ukrainian National Government Officials Study
Tour to Croatia,” which was undertaken from June 26 through June 29, 2011.
Ukrainian National Government Officials
Study Tour to Croatia
27th
- 28th
June, 2011
Prepared by:
Olga Petrenko, Operations and Senior Project Coordinator
Tatiana Korotka, Manager of GoU Development Support
18
TABLE OF CONTENTS
Abbreviations
1. Introduction
2. Participants
3. Studying Overview
3.1. The First Day of Studying
3.2. The Second Day of Studying
3.3. Study Tour Evaluation
4. Travel Information
4.1. International Travel Information
4.2. Domestic Travel Information
4.3. Ground Transportation in Zagreb
4.4. Estimated Study Tour Budget
Annex: Photo Gallery
Annex: Evaluation of Study Tour Form
ABBREVIATIONS
P3DP Public Private Partnership Development Program
APPP Agency for Public Private Partnership of the Republic of Croatia
USAID United States Agency for International Development
MOEDT Ministry of Economic Development ad Trade
PPP Public Private Partnership
EPEC European Public Private Partnership Expertise Centre
GoU Government of Ukraine
19
1. INTRODUCTION
On August 31, 2010, The Ministry of Economy of Ukraine established a PPP Interagency Working
Group by issuing an Order No. 1082 “On establishing Interagency Working Group on PPP Development
in Ukraine”.
The PPP Interagency Working Group is a continually acting consulting body under the Ministry of
Economy that was established aiming at comprehensive research and summarization of the results of
PPPs: coordination of PPP development in Ukraine; development of institutional, legislative and
scientific support in this sector; assistance to implementation of PPPs; and dissemination of experience
gained.
This training intervention supported the Ministry of Economy of Ukraine, PPP Interagency
Working group under the Ministry of Economy of Ukraine, State Agency for Investments and National
Projects, and other Ministries.
The basic goal of the study tour was to introduce participants to successful PPP unit and PPPs in
order to help them to more knowledgably formulate their opinion on the roles and functions of PPP unit in
Ukraine.
Participants were exposed to models, functions, roles and practices of the PPP unit operation in
Croatia that have resulted in successful PPP implementation, with the expectation that they will be able to
decide what principles and practices observed and discussed are applicable to PPP unit to be established
in Ukraine.
It was interested that At the end of the training program, participants would be able to describe the
roles, functions, competencies and responsibilities of PPP units in host countries. Participants were asked
to complete a written survey that represents synthesis of information, knowledge and skills acquired
during study tour. The survey showed steps participants intend to take in order to use what they have
learned and discussed during training.
Upon return to Ukraine, trainees will make presentations to broader groups of people about what
they have learnt during study tour as follow-up activities.
The Agency for Public-Private Partnership (APPP) in Croatia has similar functions to what is
envisaged for Ukraine, i.e. in addition to various promotional activities (typical of almost all PPP units), it
is has strong regulatory (gatekeeping) functions, which is intended to be the same emphasis as in Ukraine.
This typical PPP unit functions are:
approving PPP project proposals, tender documents, and draft contracts,
organizing and keeping a register of PPP contracts, and
issuing implementing instructions.
APPP has already issued regulations about the contents of a PPP contract and the appraisal and
approval of PPP proposals. Croatia is not in the EU, but looks at and takes into account EU practice, as
does Ukraine. APPP was accepted in 2010 as a member of the European Investment Bank’s European
Public Private Partnership Expertise Centre (EPEC), which is a network of PPP units and a resource
20
center of interest to Ukraine. EPEC is interested in keeping in close contact with developments in
Ukraine and might consider some form of official relationship, even though Ukraine is outside its core
group of countries. A number of PPPs have been launched in Croatia in various sectors (roads, wastewater
treatment, school construction, sports halls, police stations), and more are in an advanced state in the
pipeline. So APPP has concrete real experience to learn from and discuss. Knowledgeable people in the
area of PPPs agree that it is a good unit to visit.
Contact information:
Agency for Public-Private Partnership (APPP)
Mr. Kamilo Vrana, Ulica Andrije Hebranga 34 HR – 10000 Zagreb tel. + 385 1 55 50 600;
fax: + 385 1 55 50 695
2. PARTICIPANTS Participants of the study tour included:
Ministry of Economic Development and Trade of Ukraine
1 Husiev Yuriy Deputy head of the department, head of the division of investment and innovation
activities, head of the delegation
2 Maziarchuk
Viktor
Chief specialist, division of investment and innovation activities of the department of
investment and innovation policy
3 Kordina
Oksana
Deputy head of the department of expertise and analysis of state support
effectiveness, head of the division of innovation and investment projects expertise
Interagency working group on PPP development
4 Zapatrina
Iryna
Deputy head of the working group, head of the Ukraine Public Private Partnership
Development Support Center
5 Iuzba Valerii Expert, deputy head Entrepreneur Council under the Cabinet of Ministers of Ukraine
6 Gryshchenko
Dmytro
Expert of interagency working group on PPP development in Ukraine, advisor to the
Minister of Justice of Ukraine
Ministry of Finance of Ukraine
7 Sherstiuk
Viktoriia
Head of the division on financial issues of privatization and state property rights
management of the department of state enterprise finances, property relations, and
entrepreneurship of the Department of finance
Ministry of Regional Development, Construction, and Housing and Communal Services of Ukraine
8 Khusnutdinov
Oleg
Head of the department of external economic activity and international relations
State Agency of Investment and National Projects
9
Miroshnikov
Petro
Head of National Project "LNG Terminal"
Ukravtodor
10 Tsepelev
Sergii
Acting director of the department capital construction and investment policy
State Agency of Ukraine on Management of State Corporate Rights and Property
11 Glazunov
Artem
Head of the division of external economic and regulatory policy of the Department of
external economic relations and market development
Autonomous Republic of Crimea
21
Olga Petrenko, P3DP Operations and Sr. Project Coordinator and Tatiana Korotka, Manager of
GOU Development Support, accompanied the group as technical observers.
3. STUDYING OVERVIEW
The first day of study tour participants spent on a sessions held at the Croatian Chamber of
Commerce. At the outset, Director of the Agency for Public Private Partnership of the Republic of
Croatia, Mr. Kamilo Vrana and head of the Ukrainian delegation, Head of the Division of PPP
Development of the MOEDT, Yuri Gusev greeted the participants and presented overall goals of the study
tour.
3.1. The First Day of Studying
Training sessions began with a presentation of the Croatian experience in providing state aid in the
PPP arena. Information was presented by Martina Stolz the representative of the State Aid Division from
Croatian Agency for Competition. This presentation provoked an active discussion by participants. The
system of state aid in Croatia focused on the relevant European Union directives and approaches.
Receiving state aid for developing a PPP requires permission of Croatian Agency for Competition. In its
activities, the Croatian Agency for Competition cooperates closely with the Ministry of Finance and
APPP.
In turn, Yuriy Gusev on behalf of MOEDT presented the concept of development of public-private
partnerships in Ukraine. During discussions with Croatian colleagues, it was found that the concept of the
PPP, as described in the laws of Ukraine and Croatia, have a significant difference. In particular, the PPP
definition in Ukraine is somewhat broader, while in Croatia the PPP means the long-term relationships
between partners, where the more focused on design, construction and/or reconstruction of public
infrastructure, also assuming one or more obligations, such as financing, management and maintenance,
or providing public services to final beneficiaries within the area of the public partner's competence.
Whereas in Ukraine PPP means collaboration between public body and legal entity (other than
public and communal enterprises) or physical persons/entrepreneurs (private partners) covered the
following areas: prospecting and extraction of mineral resources; production, transportation and supply of
heat; distribution and supply of natural gas; construction and/or exploitation of highways, roads, railways,
airport runways, bridges, overhead roads, tunnels and undergrounds, sea and river ports and their
infrastructure; machine building; water collection, purification and distribution; health care; tourism,
recreation, culture and sport; provision of functioning of irrigation and drainage systems; waste disposal;
production, distribution and supply of electric energy; and real estate management.
Slavko Colak, Senior Advisor of the APPP, provided a presentation on the Legal Framework of
Croatian PPP with elaboration on the related regulatory framework. An essential feature of the PPP arena
in Croatia is the fact that in Croatia only public bodies can initiate a PPP; whereas in Ukraine it is
assumed that the proponent of a PPP initiative can be any person (public body or commercial company).
12 Yagovdyk
Igor
Deputy Minister of Economic Development and Trade of Autonomous Republic of
Crimea
22
Further, Kamilo Vrana as Managing Director of the APPP elaborated on the Institutional
Framework and the Role of the Agency and Line Ministries. Kamilo Vrana stressed among other technical
information that the PPP should be attractive to investors - the main factor that ensures the success of the
project. For the preparation of projects, APPP strongly recommends that public bodies (line ministries
and municipalities) should involve independent consultants.
The first day of the study tour was completed with active discussions among all parties present. In
particular, the discussions focused on projects for road construction, the Croatian state's participation in
various stages of infrastructure projects, methodological support by APPP, etc.
3.2. The Second Day of Studying
The second day of the study tour was devoted to practical examples of PPP organizations in
Croatia. To demonstrate their achievements, Croatian partners have chosen a regional center Varaždin.
Participants of the study tour met the leaders of Varazdin County and City Varazdin. The meeting was
also attended by the heads of departments of education and public procurement, as well as the head of one
of the companies - private partners.
Successful examples of the Varazdin PPPs emphasized their social orientation featuring the
development of schools and education. In particular, the Ukrainian delegation visited three schools in
which various objects (physical facilities) resulted from the PPP initiatives (housing and school gym).
After visiting Varazdin, the Ukrainian delegation returned to APPP to discuss issues and ask
additional questions. This meeting was attended by all key staff members, and APPP was able to clarify
details on the following topics: history of APPP development and influence of this process upon Croatia's
future membership in EU; APPP powers related to assisting and advising public bodies and private
partners; the role of strategy of PPP in Croatia in the structure of the strategic documents of the country,
and its relation to industry policy documents; preparation of feasibility studies; mechanisms for
monitoring projects; and many others issues. The final session was the follow-up evaluation led by
Tatiana Korotka.
3.3. Study Tour Evaluation
An overall evaluation of the study tour was given to the 12 participants, members of the Ukrainian
delegation. The methodology of evaluating the study tour was based on the questionnaire and numerical
evaluation, and covered three general parts:
Institutional Framework of PPP
Organizational location, structure, and functional responsibilities of PPP Unit in Croatia
Organization of the study tour
The evaluation form was provided in Ukrainian and English language with 12 participants completing the
forms in Ukrainian and 0 participants in English. See annex for the English form.
The practical results of the evaluation were as follows:
1. Participants identified the following functions as being performed by the PPP Unit in Croatia
23
Regulatory 4
Promotion 10
Marketing 7
Training 10
Monitoring 6
Other:
Strategy
Institutional cooperation
Consulting
1
1
1
Most of the participants of the study tour noted that functions such as promotion, training,
marketing, and monitoring are the responsibility of MOEDT. Some participants also suggested that the
regulatory function also applies to the powers assumed by MOEDT.
One participant highlighted the functions promotion, training, marketing, and monitoring as those
which relate to the powers of the National Projects Agency.
One of the participants found difficulty assuming the question: who is to perform this above
mentioned function in Ukraine?
In addition, four participants added that some of the governmental PPP functions should also be in
local government and line ministries.
2. In general, thematic sessions were marked by grades (1 = very bad and 5 = very good)
Overview of PPP in Croatia 4 (Good) – 3 persons
5 (Very good) – 9 persons
Legal framework and regulations 4 (Good) – 7 persons
5 (Very Good) – 5 persons
Institutional framework: role of the APPP and line ministries 3 (Satisfied) – 1 person
4 (Good) – 7 persons
5 (Very Good) – 4 persons
3. The most relevant in terms of their possible applicability to the development of Ukraine's PPP
environment in general were the following topics:
The system of state aid – 5 persons
Key features of legislation on PPP in Croatia – 5 persons
Practical examples of PPPs – 7 persons
Interaction APPP with other government agencies – 4 persons
The question and answer session was also mentioned by 2 persons.
24
4. Most participants noted that the knowledge gained about specific PPP projects in Croatia
(planned or on-going) will be used in the practical implementation of projects in Ukraine.
5. On the question: what do you now realize that you need to know more about in the PPP arena in
order to benefit your work in Ukraine? Participants' responses were distributed in the following areas:
Development of institutional structures, legislation and the powers of state bodies – 3
persons;
Find and implement new projects – 4 persons ;
Drafting of the PPP and the improvement of financing mechanisms of PPP – 2 persons;
One participant separately identified the construction industry, as a priority project for the
PPP.
3 participants were not able to determine.
6. In what ways do you think the APPP experience can be applied, or not applied, to Ukraine? This
question received a variety of responses, which can be grouped into three main groups:
a. Based on the experience of Croatia, Ukraine needs to improve vertical and horizontal
linkages of central authorities (MOEDT and line ministries) and local authorities;
b. On the future, creation of PPP Unit, like the Croatian APPP should be discussed;
c. A strategy helps to focus the PPP resources and efforts on priority areas of the economy.
7. Regarding opinions how PPP functions should be distributed among different bodies in Ukraine
(central level, line ministries and municipal level) participants expressed the following ideas:
Leave for MOEDT those functions on strategy development and prioritizing of PPP
projects, but transfer to local government other functions related to PPP – 3 persons;
National Projects Agency should be responsible for practical project implementation and
should not engage in regulation – 3 persons;
Ministry of Finance must be included in the distribution of the PPP functions focusing on
the provision of state aid and securing direct financing, as may be applicable – 2 persons
Other: 1 person; No clear opinion – 3 persons.
8. Participants strongly expressed recommendations that future study tours topics should include
project financing and practical details of PPP project implementation. One of the participants mentioned
less attention should have been on the role of the Ministry of Finance in Croatia.
9. 92% of the participants evaluated Logistics and Translation as 5 = very good.
25
10. To improve the study tour or similar study tours in the future, participants recommended take into
account the following:
To provide study tour opportunities no less than one time per quarter;
More time should be spent on the practical issues of PPPs.
11. Overall, participants highlighted usefulness of the study tour for their practical work in Ukraine –
10 persons.
4. TRAVEL INFORMATION
4.1. International Travel Information
P3DP Logistics Manager checked with travel agent and found out that unfortunately here are no direct
flights from Kyiv to Zagreb. Lufthansa and Austrian Airlines have flights to Zagreb via Vienna. Due to
short time before study tour start up, limited number of seats and high prices provided by Lufthansa, it
was decided to split the group in to two subgroups and select Austrian airlines as a carrier. On the way
back from Zagreb to Kyiv the entire groups was on one flight.
Sub-group 1. Accompanied by Olga Petrenko
DATE
OF
FLIGHT
Flight
number
AIRLINE
COMPANY
Flight
(from-to)
DEPARTURE Arrival
June 26,
2011
OS0662 Tyrolean
Airways
Kyiv-
Vienna
13.30 14.35
June 26,
2011
OS
0677
Tyrolean
Airways
Vienna-
Zagreb
17.20 18.10
June 29,
2011
OS0648 Tyrolean
Airways
Zagreb-
Vienna
15.10 16.05
June 29,
2011
OS7173 Ukraine Intl
Airlines
Vienna-
Kyiv
17.50 20.45
Sub-group 2. Accompanied by Tatiana Korotka
Iryna Zapatrina, Igor Yagovdyk, Petro Miroshnykov, Vitalii Demianuyk
DATE OF
FLIGHT
Flight
number
AIRLINE
COMPANY
Flight
(from-to)
DEPARTURE Arrival
June 26,
2011
OS7174 Ukraine Intl
Airlines
Kyiv-
Vienna
17.50 18.50
June 26,
2011
OS7053 Croatia
Airlines
Vienna-
Zagreb
19.30 20.25
June 29,
2011
OS0648 Tyrolean
Airways
Zagreb-
Vienna
15.10 16.05
June 29,
2011
OS7173 Ukraine Intl
Airlines
Vienna-
Kyiv
17.50 20.45
26
4.2. Domestic Travel Information:
Ground transportation in Kyiv:
On June 26, 2011 two shuttle busses were arranged for training participants:
Sub-group 1. Departure to the Boryspil airport from the Ministry of Economic Development and Trade
(28, Druzhby Narodiv blvd.) at 11.00.
Sub-group 2. Departure to the Boryspil airport from the Ministry of Economic Development and Trade
(28, Druzhby Narodiv blvd.) at 15.00.
4.3. Ground transportation in Zagreb
Participants were met at Zagreb airport Pleso and transferred to the Sheraton hotel. At the least day of the
study tour two shuttles delivered participants to Zagreb airport.
Accommodation: Participants were accommodated at Sheraton hotel in Zagreb.
Sheraton Zagreb Hotel
Kneza Borne 2
Zagreb, 10000, Croatia
Phone: (385)(1) 4553535
Fax: (385)(1) 4553035
Allowance Information: All participants got allowances for meals and incidental expenses according to
USG per diem rates. For arrival and departure days participants will get 75% of M& IE ($126 x 75% =
$94.5). Breakfast was included in hotel price, and was excluded from M&IE.
Date Amount
June 26, 2011 (arrival) $94.5
June 29, 2011 (departure) $107
June 27, 2011 $107
June 28, 2011 $80.5
Total $389
Confirmation of Med Certs : All participants were covered by HAC medical insurance.
First Name
Last
Name Home Country Host Country Insurance ID
Gryshchenko Dmytro Ukraine Croatia 500871683
Husev Yuriy Ukraine Croatia 500871684
Maziarchuk Viktor Ukraine Croatia 500871689
27
Kordina Oksana Ukraine Croatia 500871687
Zapatrina Iryna Ukraine Croatia 200017663
Iuzba Valerii Ukraine Croatia 500871685
Sherstiuk Viktoriia Ukraine Croatia 500871692
Khusnutdinov Oleg Ukraine Croatia 500871686
Miroshnykov Petro Ukraine Croatia 500871690
Tsepelev Sergii Ukraine Croatia 500871693
Glazunov Artem Ukraine Croatia 500871682
Yagovdyk Igor Ukraine Croatia 500871694
Petrenko Olga Ukraine Croatia 500871691
Korotka Tatiana Ukraine Croatia 500871688
4.4. Estimated study tour budget:
Croatia
Cost, USD Unit No. Total16
International travel (round trip) $500 15 RT tickets $7,500
Airport transfer $80 2 van trips $160
Ground transportation in training
country $500 4 van trips $2,000
Lodging $198 3 nights for 15 $8,910
M&IE $126 4 days for 15 $7,560
Health insurance $10 15 people $150
Translator $400 3 days $1,200
Total trip $27,480
Actual study tour budget will be available upon completion of all outstanding payments.
16
Originally, 15 participants were approved for this study tour. However, on the last working day before departure
one of the participants informed P3DP on his unavailability to go on the study tour. Since it was last minute
notification, we were unable to substitute the participant and get respective approvals from AED/HQ and USAID.
28
ANNEX
Kamilo Vrana and Yuriy Gusiev provide initial overviews of the purpose and plans for the discussion of the study tour
Oksana Kordina, Victoria Sherstyuk, and Oleg Husnutdinov listen to the presentation
by Martina Stolz on the state aid related to PPPs.
29
Igor Yagovdic, Irina Zapatrina, and Petro Miroshnikov focused on the Institutional framework and Role of the APPP
Valeriy Yuzba listens to the presentation by Sasa Marenjak on Key Indication Parameters of PPP projects
30
Martina Stolz presents state aid issues related to PPP
Kamilo Vrana provides a discussion related to APPP evolution
31
The study tour group is greeted by representatives of Varazdin County in preparation for the presentation of successful
examples of Varazdin PPPs
Dmitriy Grischenko prepares to discuss practical issues with the owner of private partner
32
Members of Ukrainian delegation are studying presentation given by Director of the school
(in which building resulted from the PPP)
The study tour group sees round the building of the school
33
ANNEX
POST-TRAINING SUMMARY EVALUATION
Name of Participant:______________________________ Date: _______________________
I. Institutional Framework of PPP 1. Please indicate what functions are performed by the PPP Unit in Croatia?
Regulatory
Promotion
Marketing
Training
Monitoring
Other (please describe)
Who is performed this above mentioned function in Ukraine?
2. Please rate the following activities (1 = very poor; and 5 = very good)
Overview of PPP in Croatia 1 2 3 4 5
Legal framework and regulations 1 2 3 4 5
Institutional framework: role of the APPP and line ministries 1 2 3 4 5
3. Which topics or presentations were the most relevant in terms of their possible applicability to the
development of Ukraine’s PPP environment in general?
4. In what ways will you use the knowledge you gained about specific PPP projects in Croatia
(planned or on-going) for your work in Ukraine?
5. Now that you have knowledge from this PPP-focused study tour to Croatia, what do you now
realize that you need to know more about in the PPP arena in order to benefit your work in Ukraine?
II.Organizational location, structure, and functional responsibilities of PPP Unit
6. In what ways do you think the APPP experience can be applied, or not applied, to Ukraine?
7. Please give your personal opinion about how PPP functions should be distributed among different
bodies in Ukraine (central level, line ministries and municipal level). Refer to the Croatia experience, if
and where appropriate.
8. Are there any questions you have about PPPs in Croatia that you think were not adequately
addressed during the study tour? If so, please describe them.
III. Organization of the study tour
9. Please evaluate the following services (1 = very poor; and 5 = very good)
Logistics 1 2 3 4 5
Translation 1 2 3 4 5
10. Any suggestions for improving the study tour or similar study tours in the future?
34
11. Overall, was the study tour useful for you? If “yes” – please note the useful areas. If “no” –
please note the areas that you think fell short of your expectations.
Thank you for your feedback!
35
d. Projects presentation to USAID, May 31, 2011
36
37
38
39
40
41
42
43
44
45
46
47
e. Excerpt from qualitative evaluation, presented to USAID, May 31, 2011
The pages following are the cover and legend pages of the qualitative evaluation of the possible sectors
and subsectors in which PPPs may be utilized and an excerpt of Table 1 addressing the uniquely-
evaluated Lviv public transportation and parking system potential pilot projects.
48
May 31, 2011
P3DP PROGRESS AT MUNICIPAL LEVEL
INITIAL REVIEW OF PPP POTENTIAL IN VARIOUS MUNICIPALITIES
Work sheets for discussing and screening sectors, cities, and project ideas
Orientation
These work sheets, elaborated progressively, were used to focus the discussion of sectors, cities, and project ideas on desired attributes. They were also used to indicate where more information needed to be gathered, even at this initial stage.
They proved extremely useful in comparing attributes across different sectors and different project ideas. They helped to sharpen the discussion.
They also constitute a useful summary of key attributes of the cities and project ideas retained for further study in the next stage.
They were not used in a mechanical or algorithmic manner to rank or preselect cities or project ideas.
Legend
+++ Strongly positive with respect to the indicated attribute
++ Substantially positive
+ Mildly positive
○ Neutral, 50:50, unsure
– Mildly negative
– – Substantially negative
– – – Strongly negative
Notes – Attributes above the central horizontal line are considered to be primary attributes; those below the line are secondary attributes.
– Where a rating is given in parentheses, the attribute in question is, strictly speaking, not applicable, but the equivalent positive, negative, or neutral effect is shown in parenthesis.
49
TABLE 0. ASSESSMENT OF PPP SECTORS AND SUB-SECTORS (IN GENERAL): SUITABILITY FOR PILOT PROJECTS
Sector or sub-
sector
Attribute
Energy
efficiency
Solid
waste
treat. or
disposal
Solid
waste
collection
Parking
facilities
Waste-
water
treatment
plant
District
heating
Water
treatment
plant, etc.
Sports or
recreation
al
facilities
City
greening
Industrial
park
Water &
waste-
water
company
National sectoral priority +++ +++ + ○ +++ +++ ○ + ○ + +++
Expressed need by
municipalities
+++ +++ + ○ + ++ ○ + + + +
No strong objections by
stakeholders
+++ +++ +++ +++ +++ + +++ +++ + +++ ○
Suitability of PPP mode +++ +++ +++ +++ +++ ++ +++ + ++ + +
Well understood and tested PPP
design
+++ +++ +++ +++ +++ ++ +++ ○ +++ + +
Private sector interest and
experience
+ +++ +++ +++ ++ ++ ++ + ++ ○ +
Remuneration by user charges (+++) ++ ++ +++ ++ ++ ++ +++ – – – +++ ++
Relatively quick development ++ + +++ ++ – – ○ – – +++ – – – – –
If user charges: low
demand/revenue risk
(+++) + ++ ○ +++ +++ +++ ○ (+++) ○ +++
Many potential PPP projects in
sub-sector
+++ +++ +++ + + +++ – – ○ ++ ○ ++
Easy to standardize
documentation
+++ ++ +++ +++ ++ + ++ – – – – – –
Additionally: lack of major
involvement by others (IFIs,
NGOs, etc.)
– – – ○ ○ +++ – – – + ++ +++ – –
Soft loans or grants available ++ ++ – – – – – +++ – – – – – – – – – – – – – ++
Likely use of “project finance” ++ + – – – ++ +++ +++ +++ ○ – – – +++ ++
50
TABLE 1A. ASSESSMENT OF CITY’S CONDUCIVENESS TO PPP PILOT PROJECT DEVELOPMENT: LVIV
Attribute Rating Comments
Strong and progressive mayor ++ Mayor reelected, progressive and western-oriented
Mayor strongly supports idea of PPP +++ Local authorities have positive attitude to private participation, there are examples of concessions
Effective local government ++
City has significant experience with development
banks and donors
+++ A number of loans, projects involving IFIs and foreign investors have been implemented in Lviv so far
City has significant experience with private sector
participation in infrastructure/services
+ Public transportation is partly run by private companies
Positive investment climate ++ Private sector plays very active role in the city’s economy
Recommended by P3DP partners ○
51
TABLE 1B. INITIAL ASSESSMENT OF PROJECT IDEA: LVIV – PUBLIC TRANSPORTATION AND PARKING SYSTEM
Attribute Rating Comments
Strongly supported by mayor ++ The project is on the top-list of current priorities for the city
On municipality’s list of priorities +++ Transportation sector is considered among top priorities over the last years
Suitability of PPP mode ++
Likely broad acceptance by
stakeholders
+++ No significant opposition is foreseen
Remuneration by user charges ++ User charges plus minimum guarantee from the local budget in case fail to collect enough fees
If user charges: demand risk is low +
If user charges: not likely to be
unaffordable
++
Clear economic/social justification +++ Easing road traffic, making the system of public transport and parking fees collection more transparent, additional
convenience for tourists
Private sector interest and
experience
+ Significant interest from the private sector expected
Strong competition likely ++ The project seems to have high level of competitiveness
Well understood and simple PPP
structure
++ Louis Berger has done a study for EBRD on Lviv’s Public Transportation sector
Known and tested technologies ++ There has not been any precedents in Ukraine
No major legislative obstacles +
No complicated environmental
issues
+++
Relatively quick implementation ++
52
f. P3DP PPP Potential Pilot Cities
The pages following are the latest available update of the P3DP PPP Potential Pilot Cities tracker that
the P3DP staff has deployed to manage its actual, designed and potential efforts with various
municipalities with respect to potential PPP pilot projects and associated awareness and capacity-
development activities.
53
54
55
56
g. Activities Schedule from draft Revised Work Plan for Year 1
The pages following contain the updated Activities Schedule from the draft Work Plan for Year 1
which reflect general concurrence from USAID as of the publication of this quarterly report. The
activities and associated targeted schedule and duration are presented monthly for Y1 with
implications for work extending into program Years 2, 3 and 4. The grey cells are time periods in
which P3DP activities in the schedule are expected to take place. Those cells with “XX” entries
correlate directly with similar activity scheduling in the annually-updated MOEDT Action Plan17
.
During Y1Q4, P3DP will embark on drafting its Work Plan for Year 2 in which these and additional
activities may be further defined, assessed and refined as necessary to adequately plan monthly
resource utilization in the second year of the program.
17
For internal consistency in this report and the Work Plan for Year 1, the term PPP Strategy Implementation
Plan has been used in this Activities Schedule in lieu of the term PPP Action Plan as now being used in the
MOEDT Action Plan documentation.
57
Year 1
Mth
1
Mth
2
Mth
3
Mth
4
Mth
5
Mth
6
Mth
7
Mth
8
Mth
9
Mth
10
Mth
11
Mth
12
Yea
r 2
Yea
r 3
Yea
r 4
Mobilization and Management
0.1 Grant signed and USAID and AED Program Director
consultations take place
0.2 COP hired by AED, headquarters orientation, arrival in
Ukraine
0.3 Key local staff hired and begin work in temporary quarters at
local partner’s offices
0.4 Permanent facilities occupied and additional staff hired
0.5 Draft initial Work Plan for Year 1 and PMP submitted
0.6 AOTR Consultations with COP
0.7 Final Work Plan and PMEP for Year 1 submitted / updated
0.8 Draft revised budget submitted / updated
0.9 Final Branding and Marketing Plan approved by AOTR
0.10 Budget accepted by AOTR
0.11 Quarterly Accruals Report
0.12 Quarterly Financial Report
0.13 Quarterly Performance Report
58
Year 1
Mth
1
Mth
2
Mth
3
Mth
4
Mth
5
Mth
6
Mth
7
Mth
8
Mth
9
Mth
10
Mth
11
Mth
12
Yea
r 2
Yea
r 3
Yea
r 4
Objective 1: Promote a sound policy environment that fosters development of PPPs
OBJECTIVE 1: Support improvements to Legal Framework
for PPP legislative and regulatory environment, and
development of National strategy
1.1 Analysis of Ukrainian legislation that regulate PPP
activities
1.1.1 Legal diagnostics of PPP National level laws based on
international best practices18
XX
1.2 Prepare recommendations on improvements to Ukrainian
PPP legislation based on international experience
1.2.1 Preparing the recommendations on institutional and
regulatory environment development including transportation,
communal services, energy services
XX
1.3 Support the drafting legal acts and secondary legislation as
influenced by analyses/recommendations for continual
improvements in the Ukrainian PPP legal framework
18
Those cells with “XX” entries correlate directly with similar activity scheduling in the annually-updated MOEDT Action Plan.
59
Year 1
Mth
1
Mth
2
Mth
3
Mth
4
Mth
5
Mth
6
Mth
7
Mth
8
Mth
9
Mth
10
Mth
11
Mth
12
Yea
r 2
Yea
r 3
Yea
r 4
1.3.1 Conducting the consultations with stakeholders on PPP
legislation and its application XX
1.3.2 Analysis of the related to PPP draft laws in the Verkhovna
Rada of Ukraine XX XX XX XX XX
1.4 Support the development of PPP Strategy
1.4.1 Preparing draft Strategy of PPP development in Ukraine
intended to ensure the most important reforms XX XX XX XX XX XX XX XX XX XX
1.4.2 Round-tables – presentation of the draft Strategy of PPP
development and draft legislative acts according to the Action-Plan XX
1.4.3 Assisting the Ministry of Economic Development and Trade
in the Strategy adoption XX
1.4.4 Preparing draft legislative acts according to the Strategy
Implementation Plan (Obj2) XX
1.5 Involve international and local experts on PPPs in the work
of Interagency Working Group on PPP development in the
framework of international experience.
1.5.1 Organizing of the International conference: Public-private
partnership: what shall we start with – presentation of the Legal
review results.
XX
1.5.2 Supporting the activity of the Interagency Working Group
(IWG) under the Ministry of Economic Development and Trade. XX XX XX XX XX
60
Year 1
Mth
1
Mth
2
Mth
3
Mth
4
Mth
5
Mth
6
Mth
7
Mth
8
Mth
9
Mth
10
Mth
11
Mth
12
Yea
r 2
Yea
r 3
Yea
r 4
1.5.3 Open meetings of IWG in regions of Ukraine - presentation
PPP policy and legal initiatives. XX
Objective 2: Support the establishment of a PPP unit
OBJECTIVE 2. Support the establishment of PPP unit and
Strategy Implementation Plan19
2.1 Provide recommendations on functions, structure and
functional responsibilities of PPP department and its divisions,
based on international experience
2.1.1 Discussion of PPP Unit Functions XX
2.1.2 The PPP project appraisal & approval process: international
practice XX
2.1.3 Selected Cases of PPP Unit Organizational Framework XX
2.1.4 Conclusive Report (after study tours) XX
2.2 Provide support in drafting legislative acts that regulate
PPP department activities
19
For internal consistency in this Work Plan for Year 1, the term PPP Strategy Implementation Plan has been used in this Activities Schedule in lieu of the term PPP Action Plan as
used in the MOEDT Action Plan.
61
Year 1
Mth
1
Mth
2
Mth
3
Mth
4
Mth
5
Mth
6
Mth
7
Mth
8
Mth
9
Mth
10
Mth
11
Mth
12
Yea
r 2
Yea
r 3
Yea
r 4
2.2.1 Application form of PPP proposal; XX XX
2.2.2 Application form for state financial support; XX XX
2.2.3 Methodology for evaluation effectiveness of PPP XX XX XX XX
2.2.4 PPP Unit Regulations development XX XX XX
Model PPP Unit Regulations development for municipal units XX
2.3 Provide recommendations on development of institutional
environment in PPP (central and regional level)
2.3.1 Analysis of institutional environment for PPP due to the
current legislation (public bodies, private sector, NGO’s and
educational institutions) XX XX
