Early Warning System

Countries

Ukraine

Geographic location where the impacts of the investment may be experienced.

Financial Institutions

European Bank for Reconstruction and Development (EBRD)

International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.

Project Status

Approved

Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.

Bank Risk Rating

Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."

Borrower

Government of Ukraine - Ministry of Economy

A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.

Sectors

Industry and Trade
Law and Government
Technical Cooperation

The service or industry focus of the investment. A project can have several sectors.

Investment Type(s)

Grant

The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.

Investment Amount (USD)

Not Disclosed

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.

Primary Source

Original disclosure @ EBRD website

Updated in EWS Aug 10, 2024

Disclosed by Bank Jul 24, 2024

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Project Description

If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the EBRD seeks, through this TC Project, to provide support to the Government of Ukraine in the development and adoption of a State Ownership Policy (SOP). This initiative, requested by the Ministry of Economy of Ukraine, aims to enhance the Ukrainian government's efforts to create the country's first-ever overarching SOP, a crucial step for Ukraine to meet IMF and EU Ukraine Plan benchmarks and implement Law 3587-IX on Improving the Corporate Governance of State-Owned Enterprises (adopted by Parliament on 22 February 2024).

Ukraine relies heavily on State-Owned Enterprises (SOEs) to operate and manage key national assets and deliver essential public services. As of 2023, the state held over 3,000 enterprises, with an estimated 85% being loss-making or existing only on paper. The poor financial performance of the SOE sector has created significant fiscal risks for the government, compounded by the Russian invasion of Ukraine.

Since 2014, the EBRD has engaged in several technical cooperation projects to align Ukraine's SOE corporate governance with international standards and best practices, such as the OECD Guidelines for Corporate Governance of SOEs. The future adoption of an SOP aligns with these efforts and international commitments, ensuring SOEs operate efficiently, transparently, and accountably.

The TC Project will support the Government of Ukraine (via the Ministry of Economy) in the end-to-end development and adoption of the new SOP. To do so, the TC Project will engage consultants with established expertise in legal and economic aspects of SOE reforms to assist the Government along two work phases:

Phase I - SOP Conceptualisation Study: specialized consultants will work closely with the Ministry of Economy to assess existing documents and initiatives related to SOE governance in Ukraine, analyse structures of SOPs in comparator countries, and propose an overall concept for the SOP to be developed. Phase II - Development of a Full SOP Draft and Action Plan: specialized consultants will work closely with the Ministry of Economy and other important stakeholders to produce the first draft of a fully-fledged SOP for Ukraine - and its Action Plan companion - based on the SOP concept agreed upon in Phase I. To support execution of Phase II and ensure optimal quality results, the consultants will also conduct stakeholder consultations, and work to support the Ministry through necessary steps to ensure the adoption of the SOP by relevant Ukrainian authorities, in time for Ukraine to meet its international commitments.

Phase II – Development of a Full SOP Draft and Action Plan: specialized consultants will work closely with the Ministry of Economy and other important stakeholders to produce the first draft of a fully-fledged SOP for Ukraine – and its Action Plan companion – based on the SOP concept agreed upon in Phase I. To support execution of Phase II and ensure optimal quality results, the consultants will also conduct stakeholder consultations, and work to support the Ministry through necessary steps to ensure the adoption of the SOP by relevant Ukrainian authorities, in time for Ukraine to meet its international commitments.

Overall, this TC Project aims to create a comprehensive and enforceable SOP, further aligning Ukraine’s state ownership system with latest national legislation and OECD Guidelines, and addressing both wartime and post-war economic development objectives.

Investment Description

Here you can find a list of individual development financial institutions that finance the project.

European Bank for Reconstruction and Development (EBRD)

A technical cooperation project.

Contact Information

This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

No contacts available at the time of disclosure.

ACCESS TO INFORMATION

You can request information by emailing: accessinfo@ebrd.com or by using this electronic form: https://www.ebrd.com/eform/information-request

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent.

You can contact the PCM at: pcm@ebrd.com or you can submit a complaint online using an online form at: http://www.ebrd.com/eform/pcm/complaint_form?language=en

You can learn more about the PCM and how to file a complaint at: http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html