Donor meeting. Ministry of Infrastructure of Ukraine 6th of December

1. DONOR
MEETING
Ministry of Infrastructure of Ukraine
6th of December

2. ACHIVEMENTS AND PLANS 2017

3. NATIONAL TRANSPORT STRATEGY
OF UKRAINE
• TA Project with MoI
and Stakeholders
based on EBA
sectoral meetings
Draft policy
• 17th of November –
Public opinion with
all related
stakeholders
National Round
Table • Drafting KPI,
measures and action
plan 2017 based on
all discussion
Draft KPI and
Action plan
• Q1 2017 approval
NTSU with all
stakeholders and
with CMU
Final version of
NTSU

4. NTSU IMPLEMENTATION SUPPORT
• EU delegation, EBRD
and MoI developed
concept of RST
Approval of
RST in MoI
• Approved 3 month
reform program for RST
with Reform
Committee that include
all stakeholders
Reform
Committee • Developed program for
approval with EU TA
projects 2018 -20
• EU budget support
Funding
• RST together with the
MoI will facilitate
planned reforms in a
framework of NTSU
implementation
Facilitation of
Reform process

5. PUBLIC ADMINISTRATION
REFORM
• TA Project with MoI
analyzed current MoI
functions
Audit of the MoI
functions
• Ministry, RST and TA
project developed an
intermediate and final
structure of MoI
Intermediate and
final structure • In the begging of
2017 new MoI
structure planned to
be implemented
Implementation of
the intermediate
structure
• In 2018 the final MoI
structure will be
implemented
Implementation
final structure

6. CORPORATE GOVERNENCE &
COMPLIANCE
• Ukrposhta – started
corporatization
• Corporate
Governance projects
in Ukrposhta with
EBRD support & UZ
Corporate
Governance
• Launched Anti-
Corruption
department that
working closely with
NABU
Anti-Corruption
Department • RST will assist MoI in
development and
implementation of
Compliance System
for MoI and all
agencies
Development of
compliance system
• Outsource with
UNOPS
• Implementation of
ERP systems
Procurement

7. LOGISTIC & TRANSIT IMPROVEMENTS
• WB will develop
action plan to
improve logistic in
Ukraine
• WB &IFC revised port
tariffs
Started Logistic TA
project
• Initiated discussions
how to improve
transit in Ukraine
• Initiated revision of
tariffs
Transit
Development • WB will support in
development of
concept for Logistic
Committee to
improve Government
coordination
Logistic Committee
•EU support for
implementation of
Logistic study
conducted by WB
including construction
of logistic hub in the
Western Ukraine
Implementation of
Logistic initiatives

8. INVESTMENTS
• MoI with MERT and
SPFU facilitated
Concession Law
amendment with
support EBRD
Amendment Law
of Concessions
• Attracted TA from IFIs
and EU for feasibility
studies ports Olvia,
Kherson, Yuzhniy,
Chernomorsk
Feasibility
studies • With support of
Western NIS and easy
business PPP office
was established in the
MoI
PPP office
• In 2017 planned
concessions for ports
Olvia and Kherson
Concession of
ports

9. ILLUMINATION OF BOTTELENECKS
•MoI with RST assistance
developed the pipeline of
projects that are clear
bottlenecks in the
transport infrastructure in
Ukraine
Pipeline of
projects
•The priority measures for
the projects developed
with assistance of EU TA
project, the window for
the projects opened in the
MoI web-site
Projects
collection process •The pipeline of projects
will be presented to all IFIs
in order to get
confirmation of interest
for potential funding in a
future
IFIs support
•Application to NIF and CEF
in order to obtain grants
for feasibility study and
potential projects
realization
EU funding
instruments

10. MARITIME
•Drafted legislation for
establishment of Maritime
Administration with TA from
EU and US Treasury support
•Discussion with
Stakeholders
Maritime
Administration
•US Coast Guard will arrive at
12 of December
•EDGE committed to support
safety and operational
experts
•EMSA
Technical
Assistance •RST assisted the Ministry in
preparation of action plan
for IMO audit, the
document will be discussed
and approved with all
related stakeholders
Action Plan IMO
audit
•The reform of USPA is
needed to conduct efficient
dredging and insure
successful ports concessions
Reform of USPA

11. INLAND WATERWAYS
•RST facilitated sectoral
donor meetings on IWW
to discuss potential
problems and identify
what could be done to
improve situation
Facilitation of
donors
•Dutch Ambassador
presented DDI and all IFIs
and donors supported this
initiative
Dnipro Development
Initiative •The Law on Inland
Waterways Transport will
be amended according the
results of TA projects
initiated by IFIs and donors
Amendment of Law
on IWT
•The program of
reconstruction of water
locks and dredging will be
developed based on the
results of TA projects in a
frame of DDI
Reconstruction of
locks and dredging

12. ROADS & ROAD TRANSPORT
•The Parliament of Ukraine
approved Road Fund
establishment in 2018
Approval of Road
Fund establishment
•New Directors of Road
Agency and Dorinvest
were appointed
•RST in Road Agency will be
established with support
of EBRD
New Management
•The program for Road
Fund implementation will
be developed with the
support of RST in Road
Agency
Program for Road Fund
implementation
•Decentralization
•Road Safety
•Implementation of FIDIC
•Restructuration of Road
Agency
Facilitation of
Reforms

13. AVIATION
• Allocation of 300
mln UAH for
reconstruction of
runway of
regional airports
Agency of
Infrastructural Projects
• Law "On peculiarities of state
regulation of the activity of air
carriers" EU Regulation #
1008/2008 and the Council of
24.09.2008)
• -The liberalization of air links with
Poland, Qatar, Turkey and other
countries
Market
Liberalization • Development of
the Aircraft Rules,
taking into
account the EU
Regulations
Safety
Improvements
• The signing
agreement of the
certification
system
convergence
(2017)
Agreement
with EASA &EU

14. PRELIMINARY RESULTS

15. WORD BANK:
Road Prioritization Study
• Increasing budget allocations at least to $500m per year to sustain network in existing condition
• Reallocating IFI loan funds to repair and rehabilitation works
• Immediate implementation of tolling/vignette system for trucks - $100m/year but rising over time
• Immediate implementation of weight control for trucks
• Explore innovative financial instruments to raise funds
Existing budget allocations are insufficient and will inevitably lead to a further deterioration
in the network. GoU to consider:
Reform maintenance industry (DAKs) to maximize efficiency of limited resources available
Implement competitive and transparent system of procurement
Implement effective system of asset management and data collection, disclose all data on
expenditures and road condition
Implement a performance contract between MIU and UAD which details key performance
indicators on road condition and safety

16. WORD BANK & IFC
Port Tariffs Study
The comparison of costs and the higher figure for revenues suggests that
port tariffs could be reduced by 61% and still cover costs
Recommendations for building a sound foundation for rational tariffs:
1. Bringing Ukraine into line with ports elsewhere with a switch to Gross
Tonnage as the base for port entry tariffs
2. Reduction in the number of published tariffs
3. Adoption of a mission statement that the objective of port pricing
should be to minimize the cost of trade to Ukraine rather than to
profit the port authority

17. PROJECTS

18. ON-GOING PROJECTS
 Revision of NTSU, EU
 Logistic Strategy of Ukraine, WB
 Port Tariffs Study, WB & IFC
 Road Prioritization study, WB
 Lowering Dnipro River and pre-feasibility of Kherson port, WB
 PPP policy and amendment of Concession Law, EBRD
 TA Maritime, Aviation, Railways, US Treasury
Railway Twinning, EU
Twinning Transportation of Dangerous Goods, EU

19. NEW PROJECTS
 Dnipro Development Initiative – EU, WB, EBRD, EIB & Dutch Embassy
 Urban safety projects focusing on five cities, Lviv, Kyiv, Kharkiv, Dnipro
and Odesa funded by EIB
 RST in Road Agency supported by EBRD, EU
 New finance expert from, US Treasury
 Maritime sector – 2 experts form Transport Canada, EDGE
 US Coast Guard mission from 12 of December
 Urban and rural sustainable development plan

20. NEEDED SUPPORT
 E-Governance: Registers of the Maritime Transport and Vehicle
Certificates, Open Budget for SOEs, Intelligent Transportation System
Organization of special donor meeting concerning E-Governance on
January 2017
 Road Safety (new funding mechanism), planned organization of special
donor meeting regarding safety on January 2017
 Human Resource Strategic Program for UZ & Road Agency
 Ports Development Plan& IWW

21. DISCUSSION