Legal rulebook for recovery

Legal & technical parameters

• Sources of financing
  • Private investments, borrowed funds, state and local budgets, grants from international donors, other sources not prohibited by law (Article 43 of the PPP Law).

  • The list of forms and sources of PPP support has been expanded: grants, demand guarantees (compensation for differences), co-financing of construction costs by state-owned enterprises, municipal enterprises, and public sector business entities.
  • Hybrid financing model: under the new PPP Law, it is possible to attract donor financing through grants from international organizations, foreign states, municipalities, and non-profit organizations, which allows for combining private investment with state support and donor assistance, significantly reducing the risks and capital expenditures of private partners in PPP projects.
• Organisational and legal status
  • Public partner (Part 2 of Article 10): the state, local community, or state/municipal enterprises.

  • Private partner: SPV (Special Purpose Vehicle) — a legal entity resident in Ukraine or an EU member state, established specifically for the implementation of a PPP project and selected through competitive procedures (restricted tenders, open tenders, competitive dialogue).
• Contractual structure
  • PPP agreement (concession, asset management, joint activity).

  • EU Law: Directive 2014/23/EU on the award of concession contracts.
• Main provisions of Directive 2014/23/EU
  • The scope covers concessions for works (including construction) and concessions for services.

  • The value of the concession must be equal to or greater than EUR 5,186,000.
  • It is based on the principles of non-discrimination, equal treatment, transparency, and proportionality.
  • The provisions of the Directive have been implemented in the Law of Ukraine “On Concessions” and the new Law on PPP: flexible procedures for sub-threshold projects, transfer of housing to private ownership, and hybrid financing accelerate post-war reconstruction, ensuring competition and transparency.

Key changes in the PPP Law

• Expanded scope of application
• Electronic system
• PPPs in residential construction with ownership rights for private partners and designated beneficiaries
• Simplified procedure for «small» (sub-threshold) projects

For the period of martial law and for seven years following its termination or cancellation, a simplified procedure applies to the preparation of state and local PPP projects aimed at restoration in the areas of healthcare, energy, social and transport infrastructure.

Legal & technical parameters

• Conditions for receiving support
  • Implementation of the Recovery and Reform Plan, developed in coordination with the Ministry of Economy and approved by the Cabinet of Ministers of Ukraine on March 18, 2024, No. 244-r (Ukraine Facility Plan).

  • Compliance with the principles of democracy, rule of law, and human rights.
  • Payments are made quarterly upon verification of compliance with the terms.
  • The EU conducts audits to protect its financial interests.
  • As of November 13, 2025, the total amount of funds disbursed to Ukraine under the Ukraine Facility program exceeded EUR 24.8 billion.
• Ukraine Facility instrument

  The Ukraine Facility consists of three components (pillars):

  • Direct financial support to Ukraine – money for the budget and reforms.
  • Ukraine Investment Framework – guarantees and instruments to attract investment. A special investment instrument to stimulate investment in priority sectors. Investors will be able to obtain financing through the EBRD, EIB, and other international institutions. Support is available to Ukrainian private and state-owned companies.
  • Assistance in the process of rapprochement with the EU – technical assistance for compliance with standards.
• Sources of financing
  • Total amount: EUR 9.3 billion under the second component (Pillar 2 – Ukraine Investment Framework) of the Ukraine Facility program.

  • Components:
    • Ukrainian guarantee: EUR 7.8 billion (with a 70% reserve ratio, amounting to EUR 5.5 billion);
    • Blending, grants, and technical assistance: EUR 1.5 billion directly from the EU.
  • Expected outcome: attraction of up to EUR 40 billion in total investments.
• Organisational and legal status
  • International financial institutions (IFOs): Key partners such as the EBRD, the European Investment Bank, the International Finance Corporation, the Kreditanstalt für Wiederaufbau (KfW), and Bank Gospodarstwa Krajowego (BGK), which directly initiate operations for the private sector.

  • Local partners: Ukrainian banks (state-owned – Oschadbank, Privatbank, Ukreximbank, Ukrgasbank; and private – Raiffeisen, ProCredit, Ukrsibbank, and others), through which IFOs provide indirect financing for investments.
  • Beneficiaries: State-owned and private companies, small and medium-sized enterprises, municipalities.
• Possible contractual arrangements
  • Direct financing: IFOs finance large corporations and municipalities directly (amounts ranging from EUR 10-20 million).

  • Indirect financing: Implemented through Ukrainian partner banks (amounts up to EUR 5 million).
  • Mixed mechanisms (blending): Simultaneous provision of loans and grants to reduce the cost of capital for businesses.

Legal & technical parameters

• Source of financing

  FDI (Foreign Direct Investment) – foreign direct investment or capital investment of EUR 12 million or more.

• Organisational and legal status

  An investor with significant investments is a legal entity registered in Ukraine, established specifically to implement a project with significant investments, which is a party to a special investment agreement and whose economic activity is directed exclusively at the implementation of the investment project and the fulfillment of a special investment agreement (paragraph 5, Part 1, Article 1 of the Law).

• Contractual structure

  Special investment agreement (SIA), with the Cabinet of Ministers of Ukraine as one of the parties.

Legal & technical parameters

• Source of financing

  Fund for the Elimination of the Consequences of Armed Aggression (Resolution of the Cabinet of Ministers of Ukraine No. 118 dated February 10, 2023) and Pillar I Ukraine Facility, with the possibility of attracting foreign donors within the framework of a specific project.

• Organisational and legal status
  • The balance holder is a legal entity or individual on whose balance sheet or in whose ownership the functional object is recorded. Balance holders are typically local government authorities, state-owned or municipal enterprises.

  • The executor is an organization responsible for managing the project lifecycle, from the preparation stage (development of a concept note, decision-making on the feasibility of the project, etc.) to the investment stage of the project (during which the project is invested in and which includes research, development of project documentation and its approval, obtaining relevant permits, preparing for and conducting procurement procedures, concluding contracts, performing construction works, equipment acquisition, personnel training, commissioning, etc.). Executors can be project initiators or contracted organizations.
  • The customer is an organization interested in the project’s implementation and outcomes, responsible for results, setting key requirements, scaling the project, and managing interactions among all participants.
  • The initiator is an organization that is the author of the project idea, its preliminary justification, and proposals for its implementation. Key clients of the DREAM ecosystem include the initiators of public investment projects and public investment programs, namely:
    • government authorities (ministries, central executive bodies, regional executive bodies, infrastructure restoration and development services, etc.);
    • local government authorities;
    • state and municipal enterprises;
    • business entities where the state owns more than 50% of authorized capital or has decisive influence over the entity’s economic activity.
  • A fund manager is a person or organization authorized to dispose of or manage financial resources, budgets, or funds in accordance with certain rules, regulations, or legislation.
  • A project creator is an organization that has registered a project in the DREAM system.
• Contractual structure

  Direct contracts based on the Law “On Public Procurement,” the Civil Code, and Resolution of the Cabinet of Ministers No. 668 dated August 1, 2005, which approved the General Terms and Conditions for the Conclusion and Performance of Contracts in Capital Construction.