Source: liga.net
On Tuesday, May 17, the State Aviation Administration of Ukraine (SAA) changed the Procedure for granting and revoking rights to operate air routes. The market has been waiting for new rules almost a year.
Airline companies were forced to work with a number of restrictions all this time, because previous rules were adopted last June as a transitional option to unlock the market. In fact, they were a kind of a compromise between parties, although, the players’ opinion on many proposed rules was not taken into account. Everyone was convinced that the revision of rules is about timing. However, most of Ukrainian airlines were so close to stop the flights already in June this year.
Changes were made and they removed two of the most acute problems of the market.
Ukrainian companies could perform international flights only after a year of flying exclusively within the territory of Ukraine. These are the requirements of a regulator, who had good intentions to develop the domestic market.
This requirement turned to be almost impossible to fulfil for most market participants because of unprofitable domestic transportation services. There are several reasons: low incomes of Ukrainians and the availability of affordable land transportation services. In addition, the termination of flights to Donetsk and Simferopol as well as significant decrease in the paying capacity of the population reduced the already small domestic market by half.
In such a way, there would be neither additional domestic flights nor international flights.
In order to recognize the airline company as the Ukrainian one, the proportion of physical and legal entities in the ownership structure shouldn’t exceed 50%. These are the rules of international aviation law. This rule exists in our regulatory and legal environment at the level of law – in the Air Code. The airline company confirms the ownership structure when obtaining the license.
It makes no sense to prove this fact again when submitting the documents to obtain the right to operate air routes. Therefore, these additional requirements are not only in direct contradiction to the provisions of the Air Code, but actually made it impossible for foreign investments to come into Ukrainian airline companies.
However, making these changes doesn’t solve all problems of the aviation industry. Moreover, the current rules don’t allow to fully develop aviation services while they should become an effective tool in the hands of a regulator to develop the market. That’s why, it is needed to completely revise the Procedure and abolish discriminatory rules and legal uncertainty.
Increased transparency and disclosure of information. International air services are provided on the basis of bilateral intergovernmental agreements signed with each country and supplemented by agreements at the level of aviation administration bodies – records of meetings of joint commissions or exchange of official letters. They determine the possibilities of Ukrainian airlines, including coordinated airports, the number of carriers in each air route, the number of available frequencies (flights per week).
The SAA doesn’t publish all this information. This creates a huge inconvenience for air carriers, who, on the one hand, are not always aware of available frequencies on certain air routes, and on the other hand – apply for getting assignments for air routes, which hasn’t already have the quota of the Ukrainian side.
A complete review of criteria for assessing applications and selecting the carrier. If there are restrictions on an air route in terms of the number of air carriers or frequencies, the procedure provides for holding of a competitive tender. Its goal is to select the most effective carrier of those who have applied. However, quantitative criteria established by the procedure don’t allow to make this choice. The assess only how effectively the carrier uses already received rights, the level of payments to the state budget per one aircraft, the number of aviation accidents and the regularity of flights within the previous six months.
The list of criteria of the EU countries is much longer: they take into account the starting date of flights and the schedule convenience, the service level of airline companies, proposed tariffs, the financial capacity of the carrier, the competition on the market, the impact on the development of regional airports and transfer flights, etc.
Liberalization of charter flights. Today they are regulated by Rules for charter flights, which are not provided for in the Air Code of Ukraine (adopted in 2011). In spite of this fact, this document is still in use and imposes significant restrictions on charter air carriers. For example, it prohibits performing charter flights to those cities, where Ukrainian airline companies perform regular flights to as well as to the cities at a distance of 200 km from them.
At the same time, this rule is also valid for air routes that don’t have restrictions for regular flights, in other words, the ones that can be opened for all air carriers concerned. For example, if the Ukrainian airline company performs regular flights from Kyiv to Barcelona, performing the charter flights is prohibited to Barcelona, neighboring Girona and even to Palma de Mallorca located on the nearby island.
Improving the quality of regulation. Many procedural aspects require to be revised and amended. In particular, it is necessary to define the powers of the commission and the reasons for refusal of admission, clarify the voting and decision-making rules, provide an opportunity to appeal the commission’s decision in the court, reduce the list of documents submitted by the air carrier for admission, etc.
The Main Scientific and Expert Administration of the Verkhovna Rada of Ukraine (HNEU) recommended to send the Draft Law #4187 on Amendments to Certain Laws of Ukraine on improving state regulation of construction, which is developed to implement the Action Plan for the best practices of quality and effective regulation as reflected in the World Bank Group’s methodology of the Doing Business 2016 ranking, for revision.
Main HNEU observations concern the abolition of the registration procedure for declarations in construction. However, the HNEU didn’t take into account that a declaration is just a notification of the business entity to the state that he begins (or finished) to do something. Without any permitting elements. Therefore, it is illogical to apply the same regulation approaches to both permits and declarations.
The Better Regulation Delivery Office considers that observations contained in the above-mentioned conclusion are not correct and not well-reasoned. Our comments to the text of this conclusion are available here.
“Today, a renewable energy sector is almost not developed in Ukraine,” the Energy sector’s head of the Better Regulation Delivery Office (BRDO) Oleksiy Orzhel says. The expert commented on the results of the round table “The status of implementation of the National Action Plan for renewable energy for the period until 2020: parliamentary control”, which was attended by people’s deputies, representatives of the State Agency on Energy Efficiency and Energy Saving, relevant ministries, organizations, the EBRD and market participants, this way.
“Two years ago, the National Action Plan for Renewable Energy for the period until 2020 was adopted. According to this Plan, Ukraine has committed to achieve the proportion of energy obtained from renewable sources at 11% in the final energy consumption in 2020. However, current development rates of this sector is extremely low. Only 29.5 MW of facilities were introduced over the last year,” Oleksiy Orzhel said and added that the development of this area would make Ukraine closer to energy independence, so it was necessary to intensify efforts to achieve the desired goal.
According to Oleksiy Orzhel, the global trend that will grow with time is a generation from renewable energy sources. At this stage, this area is the most progressive and environmentally friendly energy sector.
“The main task that we have to perform as time passed is to maintain the predictable and stable business environment, follow the renewable energy course and continue forming a comfortable investment climate. There are already established grounds for that: insensitive laws and decisions aimed at promoting the “green” energy. Now we should concentrate on ensuring their performance,” the expert stressed.
Most of today’s Ukrainian laws came to us from the Soviet time. Twenty-five years have passed, but we still can’t get rid of this “heritage”.
The Better Regulation Delivery Office (BRDO) experts together with a group of authors – people’s deputies of Ukraine prepared a draft law on amendments to the Law of Ukraine “On Legal Succession of Ukraine” regarding the abolition of the USSR acts on the territory of Ukraine. This draft law was registered under #4650 and dated 5/11/2016 in the Verkhovna Rada.
The draft law provides for amendments to paragraph 3 of the current Law “On Legal Succession of Ukraine”, according to which “Laws and other acts of the USSR and Ukrainian SSR authorities are not valid for the territory of Ukraine”, and determines a transition period of six months from the adoption of the new law.
13 base Codes and Laws of Ukraine as well as subordinate regulations adopted for their implementation are operated during this period (a full list can be found here).
If the draft law is adopted, the Cabinet of Ministers of Ukraine will be obliged within six months:
to bring its regulations in line with this Law;
to ensure revising and bringing the regulations of ministries and other central executive bodies in line with this Law;
to ensure the development and approval of regulatory acts regulating relations, which are regulated by the USSR and Ukrainian SSR subordinate laws and regulations at the time the law comes into effect, by ministries and other central executive bodies.
In such a way, this draft law not only determines the problem area of the “Soviet legal heritage”, but also instructs all central authorities to make an inventory of their regulatory environment and ensure the development of regulations that meet modern Ukrainian rule-making principles being based on a democratic approach to regulation and administration rather than on a totalitarian one.
The Better Regulation Delivery Office hopes that the proposed draft law will be promoted and Ukraine will receive the document providing the constitutional right of everyone to know their rights and responsibilities, and initiating real decommunization processes and changes in minds of citizens accordingly in the near future.
The round-table meeting “Development of the construction materials market within the context of industrial parks” initiated by the Verkhovna Rada of Ukraine Committee on Construction, Urban Development, Housing and Communal Services headed by the Committee’s Deputy Chairman, people’s deputy Petro Sabashuk took place on May 16.
The head of the Better Regulation Delivery Office’s (BRDO) Construction sector Olena Shulyak presented the analysis of the housing stock of Ukraine and pointed out the need to conduct a large-scale thermal modernization of buildings to improve their energy efficiency. In fact, according to statistics, the average age of residential houses in Ukraine is almost 42 years and the total housing facilities (most of which require the thermal modernization) exceed 996 million square meters. These scales will require not only the funds, but also the possibilities to provide enough construction materials for modernization.
In the expert’s opinion, one of the most efficient and appropriate ways to provide the market with modern construction materials is a possibility to create industrial parks, which would merge the enterprises into industrial clusters producing modern construction materials, on the basis of concrete products plants.
“Reducing the contribution of the construction industry to the Ukraine’s GDP to 2.3% in recent years has a negative impact on the overall economy. Any infrastructure projects implies dozens of involved sectors, hundreds of thousands of jobs and millions of budget revenues. Implementing projects of industrial parks that can meet the industry’s needs in modern construction materials with the government support will create the effect of quick return on state investments through providing new jobs. As opposed to massive imports of materials, the development of domestic production will be not only a cost-effective project but also a socially desirable one. However, for this purpose, it is needed to make amendments to legal and regulatory acts related to the establishment and operation of industrial parks,” the BRDO expert said.
Olena Shulyak gave examples of the European practice regarding the operation of industrial parks that has over 100 years of history. According to the data in the expert’s presentation, the production of construction materials is among the five main sectors actively developed in modern industrial parks. Moreover, in the world’s practice, almost 40% of industrial parks are located in the area of 5 to 20 hectares. At the same time, Ukrainian legislation determines the establishing an industrial park in the area of at least 15 hectares. This hinders the possibility of adjusting private enterprises (which often occupy the area of around 10 hectares) to the needs of industrial parks in Ukraine.
This meeting was a logical continuation of a series of events, where the development and prospects of the segment of technological and industrial parks in Ukraine have been analyzed. The UBC, the Association of Industrial Parks of Ukraine, the All-Ukrainian Union of Manufacturers of Construction Materials and the BRDO participated in the discussion. A key element of this meeting was the discussion of a practical aspect of transformation of private enterprises (including concrete products plants) into modernized enterprises producing modern construction materials.
As a result of the meeting, it was decided to create a working group to work out amendments to the Ukrainian legislation in order to address the issues related to producing modern construction materials by improving the development of the industrial parks network. The purpose of the working group should be to create conditions for producing modern energy efficient construction materials for thermal modernization of buildings. The participants suggested to revise the principles of the activity of state agencies for investments, which shouldn’t be directly engaged in fundraising but focus on building a favorable investment climate by making amendments to the legislation, as a separate issue. According to the experts, it is also important to conduct public awareness campaigns on the possibilities of industrial parks in the regions.
The Ukrainian Building Community was a co-organizer of the event.
The Better Regulation Delivery Office (BRDO) expert of the transport sector Serhiy Khyzhnyak thinks that the level of state regulation of the aviation industry of Ukraine is behind leading countries by ten years. In his words, the need to reform this area has been long overdue.
“The level of state regulation of the aviation industry of Ukraine is behind leading countries by ten years and this is despite the fact that we have an effective tool and a mechanism for regular updating of legislation in this area – the initialled draft Agreement on Common Aviation Area between Ukraine and the EU,” Serhiy Khyzhnyak said.
He stressed that the harmonization of legislation would allow not only to improve the Ukrainian standards to the EU level, but also open almost unlimited access to the EU airspace for Ukrainian airline companies.
According to the expert, today the main task in aviation is to start implementing 100 basic EU regulations listed in the annex to the draft Agreement on Common Aviation Area between Ukraine and the EU immediately. For example, the EU Regulation #1008/2008 on licensing of airlines.
“Adapting the licensing of airline companies to European rules is a kind of guarantee of airlines to perform obligations towards passengers. It will allow to avoid situations such as a bankruptcy of Aerosvit, when passengers and contractors have become hostages of company’s multi-billion debts,” Serhiy Khyzhnyak said.
In general, the expert expressed his hope that the new Government and the Verkhovna Rada will have the political will to address these problems and the issue related to implementation of European regulations will take priority for the Ministry of Infrastructure and the State Aviation Administration.
“These regulations apply not only to technical standards, but many issues of economic regulation. Therefore their implementation will contribute the liberalization of the aviation market,” Serhiy Khyzhnyak concluded.
Photo: Dmitrij.shpilchevskij, CC-BY-SA 3.0
“80% of sanitary deforestation is made “to order” of woodworkers,” the Better Regulation Delivery Office (BRDO) expert Ihor Lavrinenko commented on the initiative of the Cabinet of Ministers of Ukraine on the prohibition of sanitary deforestation. According to him, this moratorium will stop clear felling of forests called the sanitary one, although, in fact, 80% of such operations are fellings for primary use.
“The current state of laws and regulatory acts allow to “legalize” illegal fellings and avoid liability for that. This includes the sanitary deforestation,” Ihor Lavrinenkosaid. He added that the resolution on sanitary deforestation was adopted in 1995 and now it was considered outdated and needed to be revised. In addition, it is needed to pay attention to the quality of work of forest pathologists coordinating felling of sick forests.
The expert informed that the Better Regulation Delivery Office (BRDO) has already provided the relevant ministry with its proposals on solving problems and adopting a new regulatory framework in this area.
In particular, it is proposed:
The Better Regulation Delivery Office hopes that proposed changes would be considered and the first steps towards a comprehensive reform in this area would be done in the near future.
There is little time to ensure a significant progress of Ukraine in the Doing Business ranking, which is an indicator of the country’s investment climate. However, if the Parliament and the Government join their efforts in the next two weeks – it will be still possible to achieve some results.
Therefore, the Better Regulation Delivery Office (BRDO) addresses a request to people’s deputies to consider and adopt the key draft laws that could significantly improve the business climate in the country and have a positive effect on the ranking. In such a case, we will be able to compete for Ukraine’s entry in the TOP-50 ranking.
In particular, this refers to following draft laws:
For information:
The World Bank’s Doing Business ranking is a result of annual reviews that estimate the ease of doing business based on 10 indicators in 189 countries. The ranking components assess regulations controlling the activities of SMEs during the whole lifecycle and their actual use in practice.
Central Scientific Experts Office of the Verkhovna Rada of Ukraine (CSEO) recommended to reject the draft law #4188 on introduction the trust property concept as a way to secure performance of obligations developed with the participation of experts of the Better Regulation Delivery Office (BRDO).
The main observations of CSEO experts are related to the idea of introducing the trust property as a way to secure performance of obligations.
However, the CSEO didn’t take into account the fact that the trust property as a way of securing obligations has existed since the Roman law times, has been widely used in the EU countries and the EU Directive #2002/47/EU provides for its functioning. Implementation of this Directive is one of our obligations under the Association Agreement with the EU.
Trust property as a concept of securing performance of obligations is a new phenomenon for the Ukrainian legal system and many provisions of the draft law require detailed discussion by experts. Nevertheless, real weaknesses of this concept and possible improvements were left out in the conclusion of the Scientific Experts Office.
The BRDO doesn’t agree with this decision. Our comments to the text of this conclusion are available here.
One of the key contact points of consumers and the energy sector is connecting to electricity supply networks. Every consumer wants to be sure in both the quality and reliability of energy supply as well as in passing the connection procedure quickly and easily. This is the point we currently have problems with and the World Bank’s DoingBuiness 2016 ranking confirms that. According to this ranking, Ukraine takes the 137th of 188 positions in terms of the indicator “Connecting to electricity supply networks”.
For example, today the time to connect electricity-generating equipment of consumers is 263 days and the number of procedures that need to be passed through is 5. The cost of connecting to the electricity supply network is almost 800% of GDP per capita. This makes it virtually impossible to develop businesses, especially the small and medium ones, and implement investment projects in Ukraine.
In general, this situation can be harmful to the country’s image and scare away potential investors as well as contribute to the creation of non-transparent schemes on the energy supply market.
The government, business and experts jointly worked out a number of initiatives to solve this problem last year. In particular, the draft law #4310-1 “On Amendments to Certain Laws (regarding improving the procedure of connecting to electricity supply networks)” aimed at reforming the procedure of connecting to electrical networks was developed with direct involvement of the Better Regulation Delivery Office (BRDO) experts.
The draft law provides for:
– reducing the time of standard connection to electricity supply networks: the time to connect electricity-generating equipment of a consumer to electrical networks cannot exceed 15 working days for the first power level, 25 working days – for the second power level and 35 working days – for the third power level;
– introducing a category of “integrated standard connection” that introduces the principle of reducing the procedure time, its unification and the possibility of simplified determination of a service fee to connect in the power range of up to 5000 kW. Introduction of basic rates and complication indexes of the integrated standard connection: consumers who need to connect to electrical networks, including small and medium businesses, will be able to clearly determine the cost and time of the connection procedure and pay only for actual ordered power;
– implementing principles of openness and transparency – all information regarding the connection to electricity supply networks will be open and published on the website of the National Commission for State Regulation of Energy and Public Utilities as well as on official websites of energy supply organizations. Energy supply organizations have to publish and update the information on all existing and planned transformer substations and electricity networks linked to the map on their website every six months. The information on existing spare capacities of electricity supply networks should also be available and public.
– establishing liability for non-publishing or providing false information. Sanctions will be also applied for non-fulfillment of monopolists’ obligations regarding the work performance terms with standard and integrated connection to electrical networks. This step significantly increases the level of trust between a customer and a contractor for connection and removes the possibility for a monopolist to manipulate the data.
It also provides for introducing the electronic document flow system and simplifying requirements for documents that can be submitted electronically.
In addition, a major step towards simplifying the connection procedure is signing an electronic contract between the parties by including the customer to a public contract. Thus, the relationship between the customer and the energy supply organization is established in such a way that it prevents personal contacts between them to the greatest possible extent, and consequently – reduces the likelihood of abuse at the human factor.
The innovation is also the fact that the customer will be able to draft project estimates by himself and construct electric power lines. This will provide the customer with the right to determine the contractor by himself that significantly liberalizes existing rules limiting the choice of the consumer to the energy supply organization only.
The adoption of this draft law will finish with the “imperfections” of existing legal mechanisms in this area and contribute to implementing a transparent and open procedure of connecting to electrical networks. Accordingly, this will stimulate the investment activity and the development of domestic entrepreneurship.
However, the Committee of the Verkhovna Rada of Ukraine on Fuel and Energy Complex, Nuclear Policy and Nuclear Safety sent for reworking last week a number of draft laws on connection to electricity supply networks, including the draft law #4310-1.
Unfortunately, the postponement of a decision on simplifying the procedure of connecting to networks and implementing this component of the market reform by including it to the major project of the Law of Ukraine “On Electricity Market of Ukraine” puts all the risks that the introduction of a new electricity market carries.
The Better Regulation Delivery Office expects that members of parliament will support the initiatives after the finalization of the draft law by including the best positions of other draft laws under consideration and Ukraine will obtain a long-awaited optimization of the connection procedure and improved positions in the World Bank’s Doing Business ranking.
What for is the trust property law as a way to secure performance of obligations
If people didn’t trust each other, they would have to live within the pocket.
Herbert Proknou
Ancient Roman principle Pacta sunt servanda (agreements should be performed) is one of the generic elements of the market economy and the rule of law.
However, deficit of business culture, specific experience of primary capital accumulation, and a range of devaluations helped the national business community to form its own maxima: “Only the cowards repay”.
As the result, we acquired overload and inefficiency of the state enforcement service and common practice of unofficial ways of collecting debts, which barely fits and even cross the border of law.
Furthermore, legislation that regulates the most common way to secure performance of obligations – the pledge – proved to be staggering inefficient.
People who would like to get an overview of how pledge holders are left in the lurch are recommended to take a look at the diverted by the Verkhovna Rada of Ukraine draft law #2286a that was an unsuccessful attempt to fix some gaps in the pledge legislation.
Are there any options to solve the problem of non-performance of obligations? It seems so. Implementation of private executors as an alternative and a competitor of the state enforcement service, legislation reform in the field of bankruptcy and settlement of restructuring procedure could probably help.
However, the subject of this article is another tool – implementation of the trust property as a way to secure performance of obligations, which is an alternative to the pledge.
It refers to the mechanism known as fiduciary transfer of title. According to it, in order to ensure performance of their duties the debtor delivers to the creditor ownership of some of his property similarly, to how the property is transferred to the creditor as a pledge. The creditor can sell the transferred property only in case the debtor does not perform his duties, moreover, excess of the proceeds should be returned to the debtor. From the first sight, the described mechanism resembles the pledge. The only exception is the fact that the right of ownership for an object belongs to the creditor.
This difference is the main advantage of the trust property over the pledge – as a rule, the creditor would not need to go to court or apply to enforcement services for execution upon property in trust ownership. He would be able also to do that independently and on his own behalf.
In this case, the debtor would be unable to use most of the existing mechanisms that could block the execution upon property, because he wouldn’t have ownership of such property.
However, this mechanism has its own drawbacks. The main of them is the property rights of the creditor. After all, it will be psychologically difficult for the debtor to agree to give away his property.
Moreover, the creditor’s financial position and his reputation could be unattractive. In addition, the balance of interests in these relations is clearly unequal – the creditor has significant advantages and the potential to abuse his rights.
That’s why, the private trustee status should be very carefully regulated and the use of trust property in practice will be naturally limited to the cases when the debtor has no other way to get a loan.
Probably, most lawyers reading this text right now understood from the very beginning that trust property as a security way is a result of the Anglo-Saxon legal system. Therefore, many people have doubts about its implementation in the Ukrainian legislation. We can agree with such doubts, but the fact that the EU countries having civil law systems could integrate the transfer of title in their legislation quite easily offers some room for optimism.
Moreover, according to the Directive 2002/47/EU, the possibility to transfer the property in trust as a secure performance way should be implemented by each EU member state. Another interesting fact is that Ukraine also committed itself to fulfill the above-mentioned Directive under the terms of the EU-Ukraine Association Agreement.
Will it be easy to implement the trust property concept in Ukraine? We can say with certainty that it won’t. Introduction of a new secure performance way will require making amendments to the tax law, accounting and the bank reserve standards.
The jurisprudence should be formed from scratch as well. Is this work worth such efforts? It seems so. Provided that the Parliament works efficiently and carefully – this interesting and serious tool would be introduced.
Original publication: “Economichna Pravda”
The national air transportation market continued to grow in the first quarter of 2016. For example, Ukrainian airline companies increased transportation of people by 11% and airports provided services for 9% more passengers compared to the first quarter of last year.
“The transportation volume of Ukrainian airline companies increases for the third quarter in a row after falling by 30% in 2014 – early 2015. Today we can say that the air transportation market climbed out of the deep,” the expert of the Transport sector of the Better Regulation Delivery Office (BRDO) Sergiy Khizhnyak said.
In his words, the main growth driver is the implementation of the international hub concept at the Boryspil airport. Due to the cooperation of the airport with the airline company “International Airlines of Ukraine”, now up to 30% of their passengers are foreign citizens who make international transfer flights.
However, there are structural changes in the market. According to previous year results, the largest Ukrainian airline company “International Airlines of Ukraine” increased its passenger traffic by 26% and its share in the passenger traffic structure increased to 77% (it was 57% in 2013). And it happens when several other Ukrainian airline companies stopped their flights or reduced the number of flights significantly.
The percent of the main air harbor of Ukraine – the international airport “Boryspil” – increased up to 68% compared to 52% in 2013. The number of served passengers mostly decreased at regional airports.
“Despite this, it is too early to say about fundamental changes in the airline market. Today, the air transport is still not available for most of Ukrainian citizens,” the expert said. According to him, the growth of passenger traffic will happen together with the economic recovery and increasing in effective demand of the population.
Most likely, it will happen during the next 4-5 years and now the reduced income of the Ukrainians and pessimistic expectations hinder the development of airline transportation.
A roundtable held on April 28 in the Cabinet of Ministers was devoted to prospects of further development of innovative digital economy. The First Deputy Prime Minister – the Minister of Economic Development and Trade of Ukraine Stepan Kubiva – chaired the event. The head of the Better Regulation Delivery Office (BRDO) Oleksiy Honcharuk took part in the discussion.
“Today providing informational support to state institutions, creating intelligent systems of management and monitoring of state processes can help solve many complicated problems. In particular, the effective regulation of business,” Oleksiy Honcharuk said when commenting on the event.
Oleksiy Honcharuk also emphasized that BRDO experts were currently working on developing the intelligent regulation system “Prostir”, and the calculation of regulatory impact analysis, which was among a large number of its tools, would be open for everyone. This will allow to improve the quality and accelerate the work on documents in the area of state regulatory policy.
In general, experts believe that modern technologies not only provide a more effective government’s control but also make the relationship between the state, business and society more transparent, efficient and clear. The digital economy concept provides for introducing such technologies and information systems in all areas of government’s control.
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Oleksiy Honcharuk gave this opinion while commenting on the working meeting “Development of industrial parks in the modernization of industrial infrastructure” organized by the Ukrainian Building Community jointly with the Association of Industrial Parks of Ukraine.
“The development of industrial parks is a common European practice. The experience of a number of such countries as Poland, Slovakia and Czech Republic demonstrates the positive effect of this trend on economic development of regions and active introduction of innovative technical solutions,” Oleksiy Honcharuk said. He also added that the development of this segment was long overdue in Ukraine. The expert noted that we had a necessary base to start but there was still work to be done.
According to the BRDO head, the issues of better regulation in this area as well as problems of funding and taxation were discussed during this meeting moderated by Oleksiy Honcharuk.
He informed that during the meeting, it was decided to hold additional working groups on developing such topical issues as:
– access to getting a status of industrial parks and understanding of the concept of a management company for industrial parks;
– incentives offered by the state to an investor in order to attract him in Ukraine;
– access to infrastructure.
In addition, three specific initiatives for collaborative work of participants were determined:
– utility company status to be able to get a land plot along with the right to allocate 10 hectares of land for a management company to establish and register the industrial park;
– simplification and better regulation of procedures to use existing integral property complexes to establish industrial parks;
– search of an efficient model to transform the asset in disrepair to restore it.
For information:
The working meeting “Development of industrial parks in the modernization of industrial infrastructure” was held with support of the international law firm Dentos, the Committee of the Verkhovna Rada of Ukraine on Industrial Policy and Entrepreneurship, the Committee of the Verkhovna Rada of Ukraine on Construction, Urban Development and Housing and Communal Services, Better Regulation Delivery Office (BRDO) and MA Group organizations.
