According to the bank website, the Ministry of Infrastructure of Ukraine (MIU) launched the "Road PPP Program in Ukraine" to engage the private sector in Ukraine's existing road network through PPP contracts to facilitate quality road network upgrades and long-term maintenance through private investment. Advancement of the GoU's PPP agenda is dependent on the development of skills, capabilities and digital e-government tools and a suitable level of human capacity as well as the presence of robust PPP practices in the national and sub-national government level. Therefore, the ongoing priority for the GoU is to build capacity for developing, procuring and implementing PPP projects, assessing their fiscal impact, mitigating, and managing the associated risks. Both, EBRD and GoU have perceived a current lack of human capacity and capability, especially within the MIU, to procure, deliver and manage high-quality concessions according to best international practice and recognised opportunities for creating enhanced capability to plan, develop and procure critical infrastructure through development of a digital end-to-end process for public infrastructure management.

Key institutional requirements, processes and new digital tools are necessary if the PPP program of Ukraine is to ensure economic growth and shared prosperity in fiscally sustainable manner. In June 2020, the MIU officially requested the EBRD to support the provision of assistance to establish sustainable mechanisms for PPP/concession management.

In order to address this petition, the EBRD contracted a consultancy assignment in August 2020 to undertake the PPP Diagnostic and Legacy Structure Design, Analysis and Recommendations.The diagnostic and recommendations were presented to the MIU in January 2021 who subsequently agreed with the conclusion that there is too little current capability within the GoU to drive the development of PPP projects from preparation to transaction and, in the case of signed projects, manage the implementation and monitor the PPP contracts. In the light of the above, the GoU has expressed its interest and requested collaboration from EBRD to undertake support tasks to enhance the effectiveness of the MIU and key government ministries (MOE and Ministry of Finance) responsible for planning, procuring, delivering and managing in the PPP deals with the private sector.In respect of creating the new digital governance framework and tools for PPPs/concessions in Ukraine, the objective is to build on international sustainable infrastructure standards promoted by Sustainable Infrastructure Foundation "SOURCE" platform and utilizing the Bank's experience and lessons learned from digitalisation of public procurement in Ukraine, integrate SOURCE with the e-government systems of the Ukrainian government.

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