Ukraine Adopts New Public-Private Partnership Law: A Breakthrough for Infrastructure Investment
On 19 June 2025, the Verkhovna Rada of Ukraine passed, in its second reading, a draft law that creates a modern legal framework for implementing concession projects and public-private partnerships (PPPs). The new Law “On Concessions” replaces previously fragmented regulations and introduces a unified, transparent, and clear mechanism for attracting private capital to the restoration and development of public infrastructure.
From State-Only Financing to Partnerships
The law introduces a fundamentally new approach: infrastructure projects will no longer be implemented solely through state budget funds. Instead, they can now be delivered in partnership with businesses and international donors. The new model is expected to scale up PPPs and unlock up to USD 1 billion in investments across priority sectors such as ports, healthcare and social infrastructure, municipal facilities, and housing.
A Hybrid Financing Model
One of the key innovations is a model that combines state funds, donor technical assistance, and private investment. This reduces the financial burden on the state, speeds up project delivery, and provides safer conditions for private partners.
Concessions for Residential and Social Projects
The law opens new opportunities for residential construction under concession arrangements. Private investors may build housing, schools, hospitals, and other facilities — and even obtain ownership rights over the newly built assets (which was previously impossible). The law also provides a mechanism for registering rights to future real estate objects.
Equal Access for Small Communities
The law simplifies procedures for projects with an estimated value of up to EUR 5.5 million. In such cases, a full feasibility study is not required — a short concept note is sufficient. This enables the implementation of local initiatives, such as kindergartens or rehabilitation centers, even in smaller municipalities.
Fast-Track Recovery Procedure
For projects in healthcare, energy, transport, education, and social services initiated during martial law and up to seven years afterward, the law introduces a fast-track procedure. This allows urgent recovery projects to move forward without excessive red tape.
Transparent Selection Procedures
The law outlines the entire lifecycle of a concession project — from preparation and competitive selection to contract signing. Several models of selection are provided (open tender, restricted competition, competitive dialogue), with clear criteria, mandatory electronic auctions, and a focus on competition and transparency.
Investor Protection and Stability
The law guarantees legal stability. If future legislative changes worsen an investor’s position, compensation or amendments to the agreement may be applied. The use of international arbitration is permitted for resolving disputes, including investor-state arbitration where applicable.
Integration with Other Laws
The law takes precedence over other legislative acts in the PPP sphere. All related procedures must comply with its provisions, creating a unified and coherent legal framework.
Transitional Provisions
Most provisions of the law will come into force three months after publication. For ongoing projects, a flexible transitional regime is provided: some procedures will continue under the old law, while others will already be governed by the new one.