Ukraine Partners with IFC to Drive Privatization and Public-Private Partnerships
The Ministry of Economy of Ukraine and the International Finance Corporation (IFC) discussed ways to deepen cooperation in the field of privatization and public-private partnerships (PPP) aimed at attracting private capital and stimulating economic growth.
The Gaze reports on it, referring to the Ministry of Economy of Ukraine.
During the meeting, which took place on September 9 with the participation of Minister of Economy, Environment and Agriculture Oleksiy Sobolev and IFC leadership headed by Regional Director Ines Rocha, the main focus was on privatization mechanisms, PPP development, and the formation of an investment portfolio for domestic and international investors.
"Ukraine is moving from preparation to implementation of large-scale privatization and public-private partnership projects. We expect the first PPP tenders to be launched next year and are counting on the IFC's expert support in preparing complex transactions... We hope that these projects will drive the attraction of private capital to Ukraine, which is necessary for economic recovery and growth," said Sobolev.
The Ukrainian side presented its vision for the future privatization campaign, which envisages two portfolios of assets: strategic enterprises and assets that are not critical to the state. The IFC confirmed its readiness to participate in the preparation of large transactions and the attraction of global investors.
A separate section of the discussion was devoted to the development of public-private partnerships, including pilot projects in the healthcare sector in Zhytomyr and Vinnytsia and the concession of the Chornomorsk port terminal, which could attract around $200 million in investment.
In particular, the Ministry is working on developing subordinate legislation for the new PPP Law, creating mechanisms for the Viability Gap Fund (VGF) and a Project Preparation Facility (PPF).
They also discussed recent IFC agreements with PrivatBank on risk-sharing programs and a $120 million trade finance guarantee line to support small and medium-sized businesses, including women's entrepreneurship and exporters.
During the meeting, the parties emphasized the importance of attracting equity capital for Ukraine's recovery and agreed to coordinate efforts to present Ukraine's new Investment Strategy in the fall of 2025 at the World Bank's annual meeting.
As The Gaze reported earlier, the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) have launched a joint initiative to examine models for attracting private investment into the management and development of Ukraine’s airports.