Changes in urban planning: what does draft law 9233 offer?

Temporary structures – for example, kiosks, pavilions – are one of the most common objects for conducting trade in Ukraine. Unfortunately, the procedure for their placement is currently onerous for entrepreneurs and contains a number of corruption risks.

The Parliament registered draft law No. 9233, developed with the participation of the BRDO team. The document comprehensively revises the algorithm for placing the aforementioned temporary structures, namely:

  • a competitive procedure for placement of temporary structures for business activities on state and communal land plots (lands) for which there is no right of use by third parties is introduced, based on the results of an electronic auction conducted in the electronic trading system. Also, the draft law determines the starting price (annual fee) for electronic auctions;
  • the procedure for placement of temporary structures for carrying out business activities on privately owned land plots and land plots of state and communal property, in respect of which there is a right of use by third parties, is simplified by introducing automatic registration of the right to place a temporary structure for carrying out entrepreneurial activities after signing the scheme for placing a temporary structure for implementation of entrepreneurial activity by the person who developed it, and its approval by the person on whose order it was developed.

Also, draft law No. 9233 proposes to introduce similar electronic auctions to determine the operators of parking lots. The situation with the legal relations that regulate the arrangement of these sites is currently in a different state. In this market, there is no competition at all, which, in turn, affects the low quality of service provision.

As an alternative, the operator, which is a state or communal enterprise, institution or organization, can be determined by a decision of village, settlement and city councils without holding an electronic auction.

If, in the future, the operator identified in this way wants to hand over one or more of these parking lots to another legal entity or private entrepreneur, it will again need to conduct an electronic auction.