New Rules for Public-Private Partnerships: What Investors Should Know

On 19 June 2025, the Ukrainian Parliament adopted Law No. 7508 on improving the mechanism for attracting private investment through public-private partnerships (PPPs) (the “Law”), which significantly amended the laws of Ukraine “On Public-Private Partnership” and “On Concession”. The Law is pending the President’s signature and will enter into force 3 months after its official publication.

Background and rationale for the reform

Ukraine has been shaping the legal framework for public-private partnerships (PPPs) for many years. While the first relevant laws date back to 1999, a dedicated and functional system was only established following the 2019 reforms. However, its practical implementation has remained limited. According to Transparency International Ukraine, only 4 new PPP agreements were concluded during the 2 years following the 2019 reform.

The Law seeks to address these long-standing issues by removing administrative barriers and making the PPP framework more predictable and investment-friendly — particularly in view of Ukraine’s ongoing and post-war reconstruction needs.

Key changes

• Simplified Procedure For PPP projects below EUR 5.38 million, the Law replaces the requirement to prepare a feasibility study with a simplified concept note. This reduces the time and cost of launching smaller-scale projects, particularly in the war-affected social infrastructure sector.

• Risk Allocation The Law mandates a clear prohibition on amending agreed risk allocation — enhancing legal certainty and investor protection.

• Electronic Platform A unified electronic platform will be introduced for managing all PPP and concession procedures, from project announcements to tendering. Until fully operational (no later than 1 January 2027), relevant information will be published on the designated authority’s website.

• Donor Financing The use of donor funds and international technical assistance is now permitted for both the preparation and implementation of PPP and concession projects. This opens the door to blended financing options and reduces the financial burden on the public partner.

• Availability Payments The Law formalizes the use of availability payments — where the state compensates the private partner for keeping the facility operational, regardless of direct user fees. This approach makes projects like schools and hospitals more attractive to investors.

• Wider Scope The Law expands the scope of eligible PPP sectors to include new categories of infrastructure, such as defence facilities, residential housing, and certain types of social infrastructure. It also allows private partners to acquire ownership of newly built residential property under housing PPP schemes.

• New Public Partners The list of eligible public partners now includes state-owned enterprises.

• Initiation Restrictions Only public partners are now entitled to initiate PPP projects. The option for private partners to initiate PPPs has been abolished.

• Governing Law Ukrainian law is now the mandatory governing law for all PPP and concession agreements.

Transitional rules

• Secondary Legislation The secondary legislation — including rules for operating the new electronic PPP platform — is expected to be adopted within 12 months.

• Pre-existing Projects PPP and concession projects initiated before the new Law enters into force will continue under the rules in place at the time of initiation. However, any later stages — including tenders and contract signing — must follow the new Law.

• Pending Tenders For tenders where the deadline for proposal submission has not yet expired, draft agreements must be updated to meet the new requirements.

• Ports of Olvia and Kherson For concession agreements involving assets in the ports of Olvia and Kherson, the Law permits the parties, by mutual consent, to temporarily suspend the concession term due to force majeure (starting from 24 February 2022 and lasting no longer than until 24 February 2027), return the asset, and exempt the concessionaire from paying concession fees for the relevant period.

• Reconstruction Projects PPP projects included in designated national or local lists of priority recovery projects will benefit from a simplified preparation procedure during martial law and for 7 years following its termination or cancellation.

Transparency International Ukraine. PPP Reform for Post-War Reconstruction: Perspective or Risk? 1 September 2023. Available here.

Public and private sector stakeholders should track legislative developments to take full advantage of the updated framework. For tailored legal advice, please contact:

Maryan Martynyuk, Senior Partner – m.martynyuk@moris.law

Tetiana Kostiuk, Senior Associate – t.kostiuk@moris.law

This legal alert is for general informational purposes only and does not constitute legal advice.