The Cabinet of Ministers of Ukraine proposes the Verkhovna Rada to introduce amendments to the Budget Code regarding the provision of the possibility of undertaking long-term obligations within public and private partnership. The corresponding draft law № 3648 was registered in parliament on the 14th of December 2015, RBC-Ukraine reports.

Thus, in compliance with current legislation, the agreements, concluded within the public and private partnership, are long-term (from 5 to 50 years) and stipulate the fulfillment of obligations, including financial obligations, during the whole period of validity of the agreement. In addition, currently the public partner has been deprived of the opportunity to undertake long-term obligations for fulfillment of the agreement of public and private partnership, because the principle of the three-year budget planning is effective.

The draft law offers to introduce the possibility of conclusion by the state partner of long-term obligations under agreement, concluded within state and private partnership.

It is expected that the long-term obligation within public and private partnership – obligations of public partner under agreement, concluded within the public and private partnership, in compliance with the law “On Public and Private Partnership” regarding existing objects, the functioning of which is ensured within the scope of assignments and functions of corresponding state power bodies and local self-government, to make payments within current and/or future budget periods to private partner on conditions, stipulated by such agreement.

It is emphasized that the approval of this document will not require additional expenses from state budget, because it is expected that the amount of expenses for payment of long-term obligations within the public and private partnership for relevant budget period is set within the limits of budget purposes of the corresponding budget funds in the amount, defined in compliance with the conditions of the agreement of state and private partnership within the limits of actual expenses for functioning of relevant objects for the year, preceding the year of conclusion of the agreement