Electronic auctions for the sale of fishing rights are an important component of the fishing industry reform in Ukraine.
How do electronic auctions work?
Electronic auctions for the sale of the right to special use of aquatic bioresources in fishing industry water objects were approved by Government Resolution No. 1479 of December 30, 2022. This innovation was necessary in order to introduce a transparent mechanism for the implementation of the right to special use of aquatic biological resources, to create equal conditions of economic competition for subjects of the fishing industry, and to ensure equal access to fishing for new economic subjects in Ukraine.
Electronic auctions (today – almost 200) are available on the official website of Prozorro. Sales are carried out according to the following algorithm:
- In the system, the right to industrial fishing is issued.
- Such rights determine the permitted amount of catch of various types of fish specified in the description of the lot.
- To participate in online auctions, participants must choose a site accredited in the Prozorro.Sales system and submit their price offer.
- After the end of the auction and the publication of the bidding protocol, the winning bidder will have 20 working days to sign the contract.
- After that, the winner must pay the value of the rights to use aquatic biological resources, determined by the results of the online auction.
Bill No. 7616, which is currently being prepared for the second reading in the Parliament, is aimed at improving the mechanism by which these auctions take place.
We explain why it is important to pass the law.
Since 2016, BRDO has been engaged in fisheries reforms. We are convinced that transparent access to a common biological resource is the key to minimising corruption risks and the key to the development of small and medium-sized fishing businesses.
That is why BRDO experts, together with the State Agency of Melioration and Fisheries of Ukraine, the Ministry of Agrarian Policy and Food of Ukraine, and business representatives developed draft law No. 7616 aimed at:
- simplification of access procedures to the fishing market;
- minimisation of the number of “contacts” during the processing of permit documentation by establishing a transparent auction mechanism for the sale of rights to conclude contracts for the right to special use of aquatic biological resources at the legislative level;
- reducing the administrative burden on the fishing business, etc.
We hope for the fast adoption of the document as a whole.