DONOR MEETING

DONOR

MEETING

Ministry of Infrastructure of Ukraine

6 ^th of December

ACHIVEMENTS & PLANS 2017

2

NATIONAL TRANSPORT STRATEGY OF UKRAINE

• TA Project with MoI and Stakeholders based on EBA sectoral meetings

Draft policy

• 17

of November – Public opinion with all related

stakeholders

National

Round Table • Drafting KPI,

measures and action plan 2017 based on all discussions

Draft KPI and Action plan

• Q1 2017 approval NTSU by all

stakeholders and with CMU

Final version of NTSU

3

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 includes all

stakeholders

Reform

Committee

• EU budget support

Funding

• RST together with the MoI will facilitate

planned reforms within the framework of NTSU implementation

Facilitation of Reform process

4

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

the final structure

structure is planned to be implemented

Implementation of the intermediate

structure

• In 2018 the final MoI structure will be implemented

Implementation of the final structure

5

CORPORATE GOVERNANCE &

COMPLIANCE

• Ukrposhta – started corporatization

• Corporate

Governance projects in Ukrposhta with EBRD support & UZ

Corporate Governance

• Launched Anti- Corruption

department that is working closely with NABU

Anti-Corruption

Department

Development of compliance

system

• Outsource with UNOPS

• Implementation of ERP systems

Procurement

6

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

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

7

INVESTMENTS

• MoI with MERT and SPFU facilitated Concession Law amendment with support of EBRD

Amendment Law on Concessions

• Attracted TA from IFIs and EU for feasibility studies ports Olvia, Kherson, Yuzhniy, Chernomorsk

Feasibility

studies

Western NIS and easy business PPP office was established in the MoI

PPP office

• In 2017 concessions for ports Olvia and Kherson are planned

Concession of ports

8

ELIMINATION OF BOTTLENECKS

• 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

confirmation of interest for potential funding in the future

IFIs support

• Application to NIF and CEF in order to obtain grants for feasibility study and potential projects realization

EU funding instruments

9

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 December.

• EDGE committed to support safety and operational experts

• EMSA

Technical

Assistance

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

10

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

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

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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

Program for Road Fund

implementation

• Decentralization

• Road Safety

• Implementation of FIDIC

• Restructuration of Road Agency

Facilitation of Reforms

12

AVIATION

• Allocation of UAH 300 million for reconstruction of runways 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

Rules, taking into account the EU Regulations

Safety Improvements

• The signing of agreement on the certification system

convergence (2017)

Agreement with EASA &EU

13

PRELIMINARY RESULTS

14

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

15

WORD BANK & IFC Port Tariffs Study

16

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

PROJECTS

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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

18

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

19

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

✓ Energy Efficiency

20

DISCUSSION

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