Spring 2020 Issue
World Bank’s latest Logistics Performance Index 2018. Note: The countries are color-coded based on their performance on the LPI index. Source: WB Data. Map by bluetundra. Links available online at CFI.co
in place to create a pipeline of concession projects to support foreign currency inflows and reduce logistics costs. The government is launching an ambitious PPP programme. The initiative, supported by the IFC, will allow the government to partner with private companies to deliver major infrastructure projects in five key sectors: airports, rail, roads, energy, and healthcare. Around 70 percent of Ukraine’s population lives in cities that grapple with deteriorating public transportation, utilities, and roads. Fiscal constraints have left urban infrastructure in disrepair; 40 percent of water and wastewater treatment equipment needs to be replaced.
March 30, 2020, when the Ukrainian parliament adopted the legislation that enables Ukrainian individuals to acquire up to 100 hectares as of July 1, 2021, and for Ukrainian legal entities to acquire up to 10,000 hectares beginning in 2024. The moratorium severely hurt farmers ability to use their land effectively and inhibits access to finance. Furthermore, agricultural land in state and communal ownership is poorly managed, generating fiscal losses. Lifting of the moratorium on agricultural land sales will introduce an open land market that can attract investment to
Ukraine’s agricultural sector, especially in areas like irrigation and higher value-added agriculture. According to World Bank estimates, land reform alone could boost Ukraine’s GDP growth by as much as 1.5 percent over the next five years. Land reform will allow the introduction of new financial instruments, such as partial credit-risk guarantees and risk-sharing facilities. Ukraine has made recent progress in the business environment. It should be able to push forward to become a prosperous country with the implementation of structural reforms. i
In Ukraine, the potential for climate-smart investment in urban infrastructure — green buildings and transport — amounts to $13bn. The city of Mariupol, in the country’s south-east, has been overhauling its public transport system with environmentally-friendly and affordable bus services. The IFC provided both financing and advisory support. The city of Zaporizhzhia is also working with the IFC to develop a Smart City programme. The project aims to ease congestion, increase safety, and promote efficient energy use. Another important focus is land reform, which can boost agriculture and agribusiness and address the low agri-worker productivity. A ban on the sale of farmland was introduced in 2001 as a temporary measure but has continually been prolonged. NB: This ended, however, on
Author: Jason Pellmar
CFI.co | Capital Finance International
85