Mykolayiv City Council

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PROGRESS REPORT Q4 2018

26 December 2018, 09:43

 PROGRESS REPORT Q4 2018 (October-December 2018)

Reform Support Team

Ministry of Infrastructure of Ukraine

 

#

Key Reforms

Start – End

Status

Implementation progress / RST input

Expected Impact/ Outcome

1

Railway sector reform

 

 

 

 

1.1

Adoption of draft law “On Railway Transport of Ukraine”

November 2017 -

December 2019

Ongoing

Q4 2018 progress:

The draft law planned to be currently in the agenda of the 9th/10th session of the Verkhovna Rada of Ukraine of the VIII convocation (September 2018-January 2019).

RST team input:

Worked together with the European consultants, the MoI, UZ regarding the implementation of the EU Directives into the draft law.

Analysis of the draft law “On Railway Transport of Ukraine”, international and Ukrainian experience, legislation. Propositions concerning the passengers rights, PSO, other changes to the draft law proposed to the TK VRU.

 

Continue to monitor and analyse the draft law and last amendments, including the comments (of different stakeholders) to be accepted during the preparation of the draft law. Preparation, analysing, mentoring, development of changes to laws and secondary legislation and requesting technical assistance from the IFO in terms of pre-feasibility and feasibility studies for the development of a secondary legislation, the implementation of institutional and organizational actions specified in the draft law «On railway transport of Ukraine».

1.2

Establishment of the Railway Administration

September 2018-December 2019

Ongoing

Q4 2018 progress:

The draft of the list of the MoI’s acts till 2004 concerning UZ, list from UZ of internal acts.

RST team input:

Assistance in analyzing the above-mentioned acts aimed at identifying the sphere that should be regulated by the RA due to the state regulation orientation of those. Assisting in analysing internal acts of UZ for creating the legal base of functions of Railway Administration.

Drafted and approved acts of the Cabinet of Ministers developed structure of the new established organization, projection of potential expenses. Explanation/justification for the postponed/delayed activities (if applicable):

Insufficient political will to support proposed reforms. Long time-consuming process of approval of secondary legislation.

1.3

Revising railway tariff system and tariff base calculation

August 2017-December 2019

Ongoing

Q4 2018 progress:

N/A.

RST team input:

Conducted analysis, providing expert opinions on existing freight tariffs of railway transport, including internal documents of UZ, legislation and international experience.

Supporting in the discussions with stakeholders and approval process.

Assistance in reviewing of the passenger tariff structure and preparation of proposal for the compensation mechanism for socially regulated sensitive tariffs.

Analyzing of the current legislation, draft law, drafting the new methodology for calculating tariffs on access to infrastructure compliant with EU Directives.

Supporting in the discussions with stakeholders and approval process.

Explanation/justification for the postponed/delayed activities (if applicable):

The current legislation and corporate structure of UZ don’t provide base for realization and implementation of a new tariff approach. UZ is now in the process of corporate governance reform.

Preparation of analysis and joint approach for the new methodology according to the draft law “On Railway transport of Ukraine” and the Association Agreement between Ukraine and the European Union, incl. approval of the relevant secondary legislation.

Explanation/justification for the postponed/delayed activities (if applicable):

Insufficient commitment and cooperation among the beneficiaries and relevant institutions.

 

1.4.

Improvement of railway processes and services, attraction of investment to railway sector

April 2018 - December 2019

Ongoing

Q4 2018 progress: PSO, railway station concession, HSR, monetisation of benefits projects. Working on establishing the intergovernmental working group concerning the railway stations concession.

RST team input:

Assistance in attraction of investments to railway infrastructure (railway stations concession, HSR, PSO projects etc). UZ open data, other UZ’s projects relevant support.

Analyzing and preparations propositions for improvement of railway governance, processes and services.

Analysing current legislation, problems and collisions. Organising cooperation between UZ, MoI, state banks and the Ministry of Social Policy of Ukraine. The gaps identified, solutions proposed, incl. with e-ticketing, controlling system optimisation, identifying necessity of financial analysis due to the UZ’s statements of non-profitable commuter railway.

The necessity to verify the privileged passengers’ rights on-line is identified. The solutions proposed.

Assistance in establishing the intergovernmental working group concerning the railway stations concession.

Continue working on solving the existing problem, changing of the legislation, analysing of financial structure of the processes, providing solutions and cooperation with relevant stakeholders.

 Explanation/justification for the postponed/delayed activities (if applicable):

Insufficient commitment and cooperation among the beneficiaries and relevant institutions.

1.5.

Introducing public service obligations concept for passenger’s transportation stipulated by the European legal framework

November 2018 – December 2019

Ongoing

Q4 2018 progress:

State action plan concerning Ukraine-EU AA implementation (CMU decree 1106, 25.10.17).

RST team input:

Legislation, experience (domestic and international) analysed, propositions adopted, draft of comments to the draft law concerning PSO proposed, gaps identified. (Evaluation of conditions, mechanisms, procedure and financial models for concluding the contracts between the public service transportation carriers and the customer of the transport services in the pilot regions;

assessment of conditions, mechanisms and procedures for achieving financial sustainability while introducing public service transportations, including evaluation of conditions, mechanisms and procedures of the implementation of the e-ticketing system, as a fare instrument, in combination with necessary equipment, as a tool for controlling quantity of passengers).

PFS and FS studies will be done by EIB consultants.

А new approach to organize a public rail transportation of passengers is provided in the Ukraine-EU AA, National Transport Strategy of Ukraine 2030, the draft law «On railway transport of Ukraine» and the Regulation (EC) No 1370/2007 of the EP and of the Council of the European Union on public passenger transport services by rail and road and foresees the implementation of the contract mechanism for the passenger rail transport. Provide assistance in PFS and FS studies.

2

Road Sector Reform

 

 

 

 

2.1

Weight control system implementation

 

 

 

 

 

February 2018 – December 2019

Ongoing

Q4 2018 progress:

The draft law No. 9391 “On amending some legal acts of Ukraine regarding some issues to perform weigh-in-motion control” was registered in Verkhovna Rada of Ukraine. It aims at preserving roads and their using according to technical conditions of exploitation.

The winner in tender procedures for WiMs design, supply and installation is defined (it is the Joint Enterprise “SEA Electronics Ukraine”, “International Road Dynamics” and Automahystral Pivden’”).

RST team input:

Revised and improved draft law “On amending some legal acts of Ukraine regarding some issues to perform weigh-in-motion control”.

Discussed the main amendments of the draft law with main stakeholders (including Ukrtransbezpeka) and received their comments, which were successfully implemented in the final version of the draft law.

The draft law “On amending some legal acts of Ukraine regarding some issues to perform weigh-in-motion control” was registered in Verkhovna Rada of Ukraine under the number 9391. The draft law settles the possibility of automatic fixation of violations of size and weight requirements, raising of penalties for noncompliant behaviour and their direction to the state road fund.

The draft law is expected to be put in Agenda for voting in Verkhovna Rada.

The contract with the winner of finished tender is going to be signed by the end of December 2018, and the installation of the first WiMs are expected to be executed in Q1-Q2, 2019.

2.2

Adoption of drafts road transport law compliant with the EU acquis requirements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

August 2017 – December 2019

 

Ongoing

Q4 2018 progress:

The draft laws "On amendments to some legislative acts of Ukraine in the road transport sector in order to bring them into line with European Union regulations" and "On amendments to some legislative acts of Ukraine in securing operating motor vehicles according to the requirements of the Association Agreement between Ukraine, on the one side, and the European Union, the European Atomic Energy Community and their Member States, on the other side" were discussed with key stakeholders. On the results of discussions, the draft laws were analysed and improved with further working out with Transport Committee of Verkhovna Rada, EU experts and other relevant specialists.

On the 2nd of November 2018, a discussion about mentioned draft laws took place with the help of RST specialists.

Experts from General Directorate of safety of MIU, Governmental office of European coordination and Euro-Atlantic integration, Transport Committee of Verkhovna Rada of Ukraine, AASISTS project gave a piece of advice according to draft laws and stressed the necessity of approvement of licence conditions, which are compliant to European requirements in giving the carrier access to road transportation.

Further advocating of Road Safety Action Plan was realized by organizing series of events together with structural departments of MIU and public organizations devoted to the social campaign as a part of Road Safety Action Plan.

Informational campaign “Don’t hurry up, Ukraine” started on September 21, 2018, and finished on November 4, 2018. It was devoted to informing the society about the effects of roads accident as a result of high speed and was asked to promote the compliance of speed rules.

The final event “Don’t hurry up, Ukraine” was organized on December 11, 2018, in Lviv with a help of RST-specialists.

RST team input:

The draft laws "On amendments to some legislative acts of Ukraine in the road transport sector in order to bring them into line with European Union regulations" and "On amendments to some legislative acts of Ukraine in securing operating motor vehicles according to the requirements of the Association Agreement between Ukraine, on the one side, and the European Union, the European Atomic Energy Community and their Member States, on the other side" are registered and expected to be approved by the Verkhovna Rada.

New corrections to updated and improved version of Draft Law 7210 on Road Safety Audit were discussed with Transport Committee of Verkhovna Rada.

The proposed draft laws are expected to be a key step to harmonization of Ukrainian legislation with European Union regulations, improvement of securing operating motor vehicles and protection of competitiveness in equal market access.

The social informational campaign took place in Zhytomyr, Ivano-Frankivsk, L’viv, Kharkiv, Khmelnitsky, Kherson regions, Odesa and Kyiv. 

As it was settled on the 11th of December 2018, European Investment Bank is going to finance EUR 176 Billion for the purposes of informational support of road safety in Ukraine.

The project “Modernization and improvement of road safety in Ukraine” aims at decline of quantity and level of death as a result of road accidents. The programme consists of two basic components: “more safety roads” and “more safety road movement participants”. The first is about road projecting improvement, raising of capacity of Ukravtodor, analyzing of road accidents, road safety audit and the whole road safety management. The second is about realization of special campaigns in road safety, assessment of their influence and improvement of social acknowledgment.

 

The draft laws are expected to be put in Agenda for voting in Verkhovna Rada.

 

 

 

2.3

Alteration of road management system and road works - restructuration of the state monopolist JSC “Automobile Roads of Ukraine” (DAK)

February 2018 - December 2019

Ongoing

Q4 2018 progress:

Factual procurement procedures for consultancy services for State joint Stock Enterprise “Roads of Ukraine” are going on. Tender Committee of Ukravtodor gathered in October 2018, and 4 candidates from 5 bidders were chosen for further steps of bidding proceedings. 3 proposals were received and are under the analysis (one bidder has decided not to participate in tender proceedings any more). 

RST team input:

Requests for proposals were sent by RST specialists to 4 short-listed consultants with answering all the inquiries.

Three proposals (including technical and financial parts) are received by Ukravtodor on the 12th of December 2018. Technical part is now opened for the assessment. It is expected, that financial part will be opened by the end of December 2018, or by the beginning of January 2019. So, the contract with a winner is expected to be signed in January 2019, and the works under the contract will be executed during Q1 and Q2, 2019. 

2.4

Improvement of processes and services in road and automobile sphere, attraction of investment to sector

 

 

 

June 2018 – December 2019

Ongoing

Q4 2018 progress:

Decentralization processes in most regions of Ukraine are executed and the Road Fund is used up to 98 % by regional governments as for the November 30th, 2018.

To support decentralization reform RST participated in series of trainings for local authorities, which took place in 5 cities (Mykolaiv, L’viv, Kharkiv, Dnipro, Kyiv) in Q3 and Q4, 2018.

On the 22nd-23rd of October 2018, International Conference on strategic planning and assessment of effectiveness in road management took place. The event was organized by PIARC, MIU and Kyiv City State Administration with the help of RST specialists.

Local governments have received about 10,5 Billion Hryvnias from the state Road Fund by the end of November 2018. About 8,6 Billion Hryvnas from this amount were used for local roads repair and maintenance. It is expected, that by the end of the year, 2018, local governments will have received not less than 11,5 Billion Hryvnas from the State Road Fund.

RST team input:

RST specialists started the activity of multi-authority working group on improvement of the secondary legislation in the sphere of public procurement in road sector. RST prepared the inquiry to the Ministry of Economic Development and Trade of Ukraine about using of non-price criteria while public procurement processes. As a result, the public explanation was prepared, that was used in letter with recommendations of MIU to Ukravtodor.

Further development of the draft law “On amending some legal acts of Ukraine regarding the participation of the engineer-consultant in the realization of the construction projects”. The draft law and all relevant materials were discussed by the departments of the MoI once again. The procedure of approvement by the structural departments of MIU is still going on.

Series of trainings ended by the middle of October 2018 (Kyiv, 18-19th of October 2018). As a result, it is expected to get significant increase in the efficiency and timeliness of fund absorption.

The working group on improvement of the secondary legislation in the sphere of public procurement in road sector is expected to reach the official status and a number of documents (including the Methodology of tender documentation development and so on) are going to be developed by its members in Q1 and Q2, 2019.

Further approvement of the draft law “On amending some legal acts of Ukraine regarding the participation of the engineer-consultant in the realization of the construction projects” by all special departments of MIU. Release the draft law on the web-site for the public discussion.

3.

Maritime Reform

 

 

 

 

3.1

Implementation of Ukrainian responsibilities regarding maritime safety and protection of maritime environment as member of IMO

 

June 2018- December 2019

Ongoing

Q4 2018 progress:

Working out the IMO audit corrective action plan preparation and implementation.

RST team input:

Assisted to the MoI for implementing the IMO audit corrective action plan.

Explanation/justification for the postponed/delayed activities (if applicable):

Limited administrative capacity on transport acquis requirements of the responsible institutions involved may lead to some operational problems during the IMO audit corrective action plan preparation and implementation.

Coordination of the preparation office for IMO (funded by EDGE), providing of all necessary information and support for proper fulfilment of all findings after IMO audit and corrective action plan preparation & implementation.

3.2

MARAD functioning

May 2018- December 2019

Ongoing

Q4 2018 progress:

Developed the number of draft laws and regulations concerning functioning of the Maritime administration of Ukraine from 01/08/2018.

RST team input:

The law concerning the amendments of Budget code of Ukraine as per changing the financing principles of maritime and inland waterway transport was drafted.

Analysis made of legal framework for functioning of Maritime administration.

Developed the table of legal background of functioning of Maritime administration, after discussions in the Cabinet of Ministers of Ukraine.

Explanation/justification for the postponed/delayed activities (if applicable):

Insufficient support of all related stakeholders.

Assistance provided for legal base for the Maritime Administration further functioning.

3.3

Alteration of maritime management system - Corporatization of USPA

 

March 2018 - December 2019

Ongoing

Q4 2018 progress:

Learning the functions of USPA and learning an experience of foreign European countries.

Corporatization of USPA, developing of necessary legislation.

Memorandum of understanding in the field of port training, consultancy, port management, and investment opportunities in the light of Ukrainians ports maritime reform was officially signed between Port of Antwerp International and APEC – Antwerp/Flanders Port Training Center and Ukrainian Sea Ports Authority under MoI umbrella.

RST team input:

Assisted to RST office in Ministry of economy and to USPA in process of corporatization of USPA, drafting roadmap for MoI to make headway on the corporatization of the USPA; assisted in drafting TOR for Corporate governance improvement at USPA.

Memorandum of understanding in the field of port training, consultancy, port management, and investment opportunities in the light of Ukrainians ports maritime reform was officially signed between Port of Antwerp International and APEC – Antwerp/Flanders Port Training Center and Ukrainian Sea Ports Authority under MoI umbrella.

Explanation/justification for the postponed/delayed activities (if applicable):

Excessively time-consuming process regarding to the adoption of prepared appropriate laws and bylaws.

Analytical review of the function and institutional activity of USPA conducted.

Number of necessary draft legislation, regulations and policies prepared.

 

3.4

Adoption Methodology of calculation of port dues

May 2018 - December 2019

Ongoing

Q4 2018 progress:

Drafting policies for maritime sector as it is stipulated by Law of Ukraine “On marine ports of Ukraine”.

Developed draft decree of Cabinet of Ministers of Ukraine concerning procedure of compensation of investments in strategic objects in port’s sphere.

Assisted in drafting, updating, discussing decree of the Ministry of infrastructure of Ukraine – Methodology for calculation of port fees rates.

RST team input:

RST assisted to MoI and USPA to develop a methodology for port fees.

The existing draft of the Resolution of Cabinet of Ministers of Ukraine as per the Procedure of Investments compensation to investors made in port’s strategy infrastructure, as it is stipulated by Law of Ukraine “On marine ports of Ukraine” was amended in new edition.

Explanation/justification for the postponed/delayed activities (if applicable):

Excessively time-consuming process regarding to the adoption of the laws and bylaws.

Developed proposal for the sustainable sector financing.

3.5

Improvement of processes and services in maritime sector, attraction of investment to sector

December 2017- December 2019

Ongoing

Q4 2018 progress:

Prepared numbers of reports concerning pre-feasibility study for concession of Yuzhny Seaport. Approving of pre-feasibility study by MoI. Prepared the Conceptual Note as a part of concessions preparation process.

RST team input:

Assistance in preparation and final approval by MoI of pre-feasibility study for concession of Yuzhny Seaport incl.Organizing of meetings of working group on Yuzhny Seaport concession in Odessa, Yuzhny and Kyiv as per Labour issue in the concession framework, support in the attraction of potential bidders.

The conceptual note was developed. After discussing and approving by Working Group, conceptual note will be sent to the Ministry of Economic Development and Trade of Ukraine for adoption.

Explanation/justification for the postponed/delayed activities (if applicable):

Some governmental institutions are reluctant or do not have the capacity to participate in the project in the necessary manner.

Concluding the Concession agreement of Yuzhny seaport.

3.5

Improvement of processes and services in maritime sector, attraction of investment to sector

December 2017– December 2019

Ongoing

Q4 2018 progress:

Development of pre-feasibility study for Bilgorod-Dnistrosvky Seaport started and prepared first report, also the Working Group concerning development of pre-feasibility study for Bilgorod-Dnistrosvky was launched.

RST team input:

Development of pre-feasibility study for Bilgorod-Dnistrosvky Seaport started and prepared first report, also the Working Group concerning development of pre-feasibility study for Bilgorod-Dnistrosvky was launched. Prepared the draft of Terms of references for development of pre-feasibility of Bilgorod-Dnistrovsky Seaport.

Conclusion report concerning the ways of further effective profitable development of Bilgorod-Dnistrosvky Seaport

 

3.5

Improvement of processes and services in maritime sector, attraction of investment to sector

December 2017- December 2019

Ongoing

Q4 2018 progress:

Launched the reorganization of marine ports’ harbormaster services via allocation of functions of safety navigation and supervision for safety navigation as per requirements of national and international law (clause 21 of Road map for Reforming the maritime transport).

 

RST team input:

Assistance in working-out of the plan of laws and regulations for implementation of Ukrainian law to international treaties of Ukraine in the field of commercial navigation and shipping on inland waterways on the period of years 2018-2022 which consists from 78 positions.

Draft of distinction of functions of harbour masters and captain of seaport was prepared. Harbour masters should stay in USPA and captains of seaport will be transferred to Maritime Administration, to split their functions we need to make changes to the Merchant Code of Ukraine;

Explanation/justification for the postponed/delayed activities (if applicable):

Some governmental institutions are reluctant or do not have the capacity to participate in the project in the necessary manner.

Fulfilment of plan of actions of implementation of EU directives in the field of international maritime and inland waterway transport stipulated by Roadmap for Development of Maritime sector in Ukraine approved by Order of Cabinet of Ministers of Ukraine №747-p dd 11.10.2017

4.

Inland Waterways

 

 

 

 

4.1

Adoption of IWW draft law

February 2018 –

December 2019

Ongoing

Support and promotion of the draft law in the Verkhovna Rada of Ukraine.

Q4 2018 progress:

According to the results, including the RST input, the draft law is registered in the Verkhovna Rada (№ 2475а-д).

The draft law is in the agenda of the 9th session of the Verkhovna Rada of Ukraine (September 2018 - January 2019).

RST team input:

RST provides ongoing support in preparing of necessary materials for the promotion of the draft law.

Also, the importance of adopting the draft law is reflected in all key industry events.

It is also possible to initiate approach of the international organizations to the Verkhovna Rada in order to support draft law.

The adoption of the draft law
№ 2475a-д in the first reading of parliament.

Submitting a draft law to the agenda of the next regular session of the Verkhovna Rada.

4.1

Adoption of IWW draft law

February 2018 –

December 2019

Ongoing

 

Preparation of the draft law “On Inland Water Transport” for the second reading according to the comments of the state authorities.

RST team input:

RST provides direct work on the text of the draft law and the development of accompanying documents, tables and materials necessary for the second reading of the draft law.

RST provided input in processing of the comments, organizing and facilitating stakeholder meetings; preparing proposals; preparing activity summaries and descriptions; preparing powerpoint presentations; facilitating engagement of international experts.

The state authorities’ comments are processed and the updated text of the draft law prepared for submission to the second reading after the passage of the first.

 

4.1

Adoption of IWW draft law

February 2018 –

December 2019

Ongoing

Development of drafts of by-laws in order to implement provisions of EU directives and regulations in accordance with the Association Agreement.

Q4 2018 progress:

The implementation plan of the Directive (EU) 2017/2397 of the European Parliament and of the Council of 12 December 2017 on the recognition of professional qualifications in inland navigation and repealing Council Directives 91/672/EEC and 96/50/EC is prepared.

RST team input:

Analysis of the EU legislation and support in drafting of proposals for the draft law “On Inland Water Transport” 2475а-д and by-laws in the relevant field.

Preparation of proposals to the draft law № 2475a-д in order to implement provisions of EU directives and regulations in accordance with the Association Agreement.

Preparation of by-laws, adoption of which is possible before the adoption of the draft law                                    № 2475а-д and which will implement provisions of EU directives and regulations in accordance with the Association Agreement.

4.2

Improvement of processes and services in IWW sector, attraction of investment to sector

February 2018 –

December 2019

Ongoing

Leading coordination of the technical assistance under Dnipro Development Initiatives (DDI) in the area of inland waterways.

Q4 2018 progress:

Conducting a survey and preparing the expert finding of the Zaporizhzhya Lock with the participation of the representatives of the scientific institute and representatives of the Technical Corps of the US Army agreed.

RST team input:

RST coordinate communication between representatives of the US Treasury, representatives of DDI, Ukrvodshlyah and the preparation of necessary materials.

In the short-term, the main issue is the solution of the Zaporizhzhya shipping lock repair technology.

In the future, after the adoption of the draft law № 2475a-д, it is planned to attract loans from international financial institutions to finance the reconstruction of navigable locks on the Dnieper river.

4.2

Improvement of processes and services in IWW sector, attraction of investment to sector

February 2018 –

December 2019

Ongoing

Development of the proposal for financing of the IWW sector.

Q42018 progress:

The state enterprise "Ukrvodshhlyah" has allocated state financing for the operation of navigable gateways

In addition, the allocation of additional funding for 2019 has been agreed with the aim of major overhaul of navigable locks.

RST team input:

Support was provided for the maintenance of regulations to obtain a financial passport for the state enterprise "Ukrvodshlyah" in 2018 and ensure the continuous functioning of navigable gateways.

Assistance was provided in the preparation of normative documents for financing in 2019, in particular regarding the preparation of a draft law of the Cabinet of Ministers for obtaining funds from the reserve fund for carrying out repair works at navigable locks.

Ensuring the smooth operation of navigable locks before the adoption of the law, which clearly defines the ways of financing the maintenance of inland water transport infrastructure.

5.

Aviation TransportReform

 

 

 

 

5.1

Increasing links between EU and Ukraine

September 2017 – December 2019

Ongoing

 

Q4 2018 progress and RST team input:

Adopted amendments to MoI Order № 337 on Airport Charges reflecting new principles and requirements of aviation market (MIU Order № 398 dated 31.08.2018).

Investigation of available IT solution for aviation sector analysis and monitoring improvement.

Participation and expert support in negotiation process with air carriers on air services commencement to Ukraine, filling in airline check-list, providing them with information about operational features of flight operations to Ukraine.

New amendments identify clearly for airport users which costs covered by airports charges.

Airports will be more flexible in negotiations with airlines and will be able to offer more attractive conditions.

Better analytical support of aviation sector

Increasing number of flights and passenger flow from regional airports.

5.2

Adoption of Strategy of aviation development

October 2017- December 2019

Ongoing

 

Q4 2018 progress and RST team input:

Development of Action Plan to National Transport Strategy of Ukraine 2030 (Aviation Sector).

Aviation Strategy provisions implementation into practice.

General reform progress:

Prepared Draft Action Plan to NTSU 2030 (4 priorities). Aviation Strategy draft ready for adoption by Cabinet of Ministers of Ukraine.

Open and liberalized aviation transport market.

Free competition between players, open access to foreign companies.

Higher service and safety standards and better customer satisfaction.

5.4

Improvement of processes and services in aviation sector, attraction of investment to sector

December 2017 – December 2019

Ongoing

 

 

Communicating with possible investors (KfW, DEG, FMO, Fraport, AviAlliance, etc) for regional airport development initiative and airport “Bila Tserkva” (pilot project) implementation

Supporting of Regional Airports Development Initiative implementation (gathering required data, arranging on-site visits and meetings with the parties concerned).

Support and assistance to AASISTS expert in Bila Tserkva pre-feasibility study (gathering required data, arranging on-site visits and meetings with the parties concerned, amendments to final report).

Assistance of feasibility study preparation beginning for airport “Bila Tserkva”: arrangement of kick-off meeting with investment companies (FinPoint, Capital Times, Millennium Capital)

Expert support in airport reconstruction projects, commercial issues, negotiation process with airlines, airport charges setting, international status assignment.

Developed aviation transport reform agenda and work planning

Air traffic development and growth from regional airports including international operations.

6

SOEs reform

 

 

 

 

6.1

Updating the list of companies under the Ministry in need of corporatization and privatization

August 2017-

December 2019

Ongoing

Analyzed and developed propositions to the list of companies under the Ministry in need of corporatization and privatization.

Assisted in development of the roadmap for corporatization and privatization for selected priority SOEs under the Ministry, including SOE USPA.

Developed documents and assisted in drafting legislation concerning the corporatization and privatization, including drafting proposals and amendments to the Law on the List of objects of the right of state property, which are not subject to privatization.

Supported in the discussions with stakeholders and approval processes.

Explanation/justification for the postponed/delayed activities (if applicable):

Insufficient commitment and cooperation among the beneficiaries and relevant institutions.

Updated the list of companies under the Ministry in need of corporatization and privatization.

 

6.2

Alteration of SOEs management system

August 2018-

December 2019

Ongoing

Assisted in implementation boards in selected SOEs, including Ukrposhta.

Assisted in the preparation to corporatization selected priority SOEs under the Ministry, including SOE USPA. Assisted in preparation and update of the roadmap for corporatization for selected priority SOEs under the Ministry, including USPA,

Assisted in preparation and update Ukrposhta Corporate Governance Action Plan.

Assisted in preparation and update UZ Corporate Governance Action Plan.

Developed documents and assisted in drafting legislation.

Developed and supported ownership policies for the SOE USPA and Ukrposhta.

Explanation/justification for the postponed/delayed activities (if applicable):

Insufficient commitment and cooperation among the beneficiaries and relevant institutions.

SOEs management system changed.

 

6.3

Conducting a set of transparent competitions for appointment of 10 directors of SOEs under the Ministry’s control

August 2017-

December 2019

Ongoing

Assisted in developing requirements for directors of SOEs under the Ministry’s control.

Developed documents and participation as expert institution in competitions.

Explanation/justification for the postponed/delayed activities (if applicable):

Lack of activity of the nomination committee.

Insufficient political support and commitment, excessive critics from the public side.

10 directors of SOEs under the Ministry’s control appointed based on results of the transparent competitions.

 

 

6.4

Supporting for improving staff efficiency

August 2017-

December 2019

Ongoing

Developed propositions for improving staff efficiency.

Organized workshops, seminars, trainings etc.

Assisted in developing related documents.

Explanation/justification for the postponed/delayed activities (if applicable):

Insufficient political support and commitment, excessive critics from the public side.

Staff efficiency in selected SOEs improved.

 

7

Sustainable financing for infrastructure projects

7.1

Attraction investments, grant support, international technical assistance in transport sector

August 2017-

December 2019

 

Ongoing

Q4 2018 progress and RST team input:

Financial Contract on Connectivity Project signed.

Assisted in Financial Contract on Connectivity Project preparation, assisted in Project proposal preparation for MoF, supported Technical discussion on FC preparation CabMin 70 process for Intelligent Transport Systems, road and UZ bottlenecks

Assisted, organized, supported attraction of investments, grant support, international technical assistance in transport sector.

Cooperated with EU, EBRD, EIB, WB, financial institutions.

Assisted in the elimination of infrastructural bottlenecks program realization, prepared pipeline of projects Supported discussions with stakeholders.

Investments, grant support, international technical assistance in transport sector attracted.

 

 

7.2

Developing Ukraine Investment Plan for EaP countries

August 2017-

December 2019

Ongoing

Developed draft Ukraine Investment Plan for EaP countries, supported its implementation.

Supported discussions with stakeholders and approval processes.

 

Developed and implemented Ukraine Investment Plan for EaP countries

 

7.3

Creating the list of infrastructure projects

August 2017- December 2019

Ongoing

Developed online register of with prioritization criteria according to the best EU practices.

Implementing online register of infrastructure projects with prioritization criteria according to the best EU practices.

Training MoI stakeholders.

Supported in the discussions with stakeholders.

Developed online register of with prioritization criteria according to the best EU practices.

 

7.4

Developed pipeline of projects, prepared projects under the elimination of infrastructural bottlenecks program

August 2017-

December 2019

Ongoing

Developed Pipeline of projects, prepared projects under the elimination of infrastructural bottlenecks program.

Supported in the discussions with stakeholders and approval processes.

 

Pipeline of projects, prepared projects under the elimination of infrastructural bottlenecks program developed.

 

7.5

Infrastructure project cycle management reform

August 2017-

December 2019

Ongoing

Assisted in improving the infrastructure cycle management.

Cooperated with the EU financed project. Supported in the discussions with stakeholders.

Approved plan for improving the infrastructure cycle management

 

8

National Transport Strategy approval and implementation and harmonisation of the legislation compliant with the EU acquis according to the AA

 

       

8.1

Approving NTSU action plan

September 2018- December 2019

Ongoing

Assisted in prioritization of the measures of NTS action plan. Assisted in developing and updating.

Developed (supported) related documents (analysis, backgrounds etc.).

Supported in the discussions with stakeholders and approval processes.

Supported implementation.

Cooperated with the EU funded project and stakeholders.

Supported attraction of donors and investors for financing the NTS measures.

Explanation/justification for the postponed/delayed activities (if applicable):

Long process of approval with the all stakeholders

NTSU action plan approved.

 

8.2

Approving Logistic strategy of Ukraine

September 2018- December 2019

Ongoing

Assisted in developing and updating draft Logistic strategy of Ukraine.

Developed (supporting) related documents (analysis, backgrounds etc).

Supported in the discussions with stakeholders and approval processes.

Supporting implementation.

Cooperated with the World Bank and stakeholders.

Supported attraction of donors and investors for financing the Logistic strategy measures.

Explanation/justification for the postponed/delayed activities (if applicable):

Long process of approval with the all stakeholders

Logistic strategy of Ukraine approved.

 

9.

PublicAdministration Reform

 

 

 

9.1

Optimization of the organisational structure of the Ministry in line with the relevant policy framework established by the Government.

June 2017-

December 2019

Ongoing

Q3 2018 progress and RST team input:

Providing support to the current employees of the Ministry about Public Administration Reform mission, importance and expected results.

Promotion activities of Public Administration Reform by organizing and implementing a practice of Career Days in the Ministry.

Memorandums about cooperation among Ministry and educational institutions signed.

Start of providing support in drafting the structural documents for 4 new directorates along with the Lead Legal Counsel support.

General reform progress:

Increased interested or Public Administration Reform in society for strengthening the application process by bigger numbers of candidates

Explanation/justification for the postponed/delayed activities (if applicable):

The delay in the implementing of new structure changes is caused by the lack of human resources to assist in the process and the need of legal changes to be done.

Organizational structure changes are implemented. i.e.

Renewing the key Ministry staff as part of the implementation of the Concept of Reform Staff Positions approved on 11 November 2016.

 

9.2

Assessment of the current HR practices and upgrade procedures and methodologies (recruitment, assessment and trainings, career development, remuneration) in line with the new law "On Civil Service" and its secondary legislation.

August 2017- December 2019

Ongoing

Q4 2018 progress and RST team input:

Assisting in discussions and initiatives for the modern training practices for state servants.

Assisting in organizing and implementation of the training plan developed by the EU project within NTSU 2030 for the Ministry sectoral staff.

General reform progress:

Explanation/justification for the postponed/delayed activities (if applicable):

The delay with the implementation of the assessment may be caused by the formation of new directorates.

Transparency and effectiveness of HR processes in the Ministry improved.

9.3

Simplification and improvement of the efficiency of internal communication, approval and decision-making processes in line with the applicable policy development framework

August 2017- December 2019

Ongoing

Q4 2018 progress and RST team input:

Assisting in creating the concept of delegation separations for optimizing the working process.

The final draft of the handbook for new-comers to civil service in the Ministry as a part of onboarding process and simplification of horizontal communication has been launched in cooperation with the departments of the Ministry.

Explanation/justification for the postponed/delayed activities (if applicable):

Simplification and improvement of the efficiency of internal communication is not among the priorities of the Ministry.

 

9.4

Supporting the restructuring processes within Ministry

July 2017- December 2019

Ongoing

Q4 2018 reform progress and RST input.

Assistance in restructuration of the Ministry by implementing of the Directorates.

Developing (supporting) related documents.

 

Explanation/justification for the postponed/delayed activities (if applicable):

Long process of Public Administration reform caused by the legal framework and lack of workforce

Restructuration of the Ministry by implementing the Directorates.

 

9.5

Human resources department development strategy

July 2018- December 2019

Ongoing

Q4 2018 reform progress and RST input.

Established connection regarding the potential cooperation with KMBS for proving support in HRM strategy development.

Identifying major needs for HRM development.

Explanation/justification for the postponed/delayed activities (if applicable):

Lack of workforce and long decision-making process.

HRM strategy for the Ministry developed.

 

9.6

Supporting for improving staff efficiency

August 2017- December 2019

Ongoing

Q4 2018 reform progress and RST input.

Developing propositions for improving staff efficiency.

Organizing workshops, seminars, trainings etc.

Assistance in developing related documents.

 

Explanation/justification for the postponed/delayed activities (if applicable):

Insufficient commitment and cooperation among the beneficiaries and relevant institutions.

Staff efficiency in MoI improved.

 

10

E-governance

 

 

 

 

10.1

Assistance for implementation of e-government projects and open data approach as part of the 2016-2020 Public Administration Reform Strategy.

August 2017- December 2018

 

Ongoing

Q4 2018 progress:

The launch of the carrier's e-cabinet.

RST team input:

Assistance in developing the system, bugfixing and revisioning. Organization of meetings with representatives of MoI, State Service of Ukraine for Transport Safety, E-gov agency.

After starting the system in test mode, a lot of errors were detected. Signed 2 additional agreement for revision after user requests. The process of preparation for commercial operation.

 

10.1

Assistance for implementation of e-government projects and open data approach as part of the 2016-2020 Public Administration Reform Strategy.

August 2017-

December 2019

 

Ongoing

Q4 2018 progress:

Open Budget initiative.

RST team input:

Expansion of the open budget chapter on the MoI’s website. Now it contains information about the spending of the 14 largest branches of Ukrzaliznytsia.

 

 

Open Budget chapter was lunched -https://mtu.gov.ua/files/projects/budgetuz.html

10.1

Assistance for implementation of e-government projects and open data approach as part of the 2016-2020 Public Administration Reform Strategy.

August 2017-

December 2018

Adjusted:

July 2019

 

 

Q4 2018 progress:

Implementation of e-ticket in Ukraine.

RST team input:

Assistance in developing secondary legislation (draft amendments to the Resolution of the Cabinet of Ministers of Ukraine on monetization), coordination of activities of the working group on e-ticket implementation (organization, working with representatives of cities, State Fiscal Service, Ministry of Social Policy, Ministry of Education)

Organization of a meeting of the working group on the implementation of e-ticket in Ukraine.

 

 

Annex 3

Reform Support Team at the Ministry of Infrastructure of Ukraine

Executive Summary on Progress for the period October 2018- December 2018

 

  1. 1.      Railway sector reform

 

 Providing comments to the draft law “On Railway Transport of Ukraine”, analysis of comments of the relevant stakeholders, including those to be accepted during the new preparation of the draft law for the next session of the Verkhovna Rada of Ukraine.

Introducing and working on PSO concept for the railway in 2 pilot regions- Dnipropetrovskaya and Zaporozhskaya regions, working on monetisation of benefits/privileges passengers on-line verification, railway stations concession projects, e-ticketing projects

Proposed expert opinions, identifying gaps, conducted analysis of liberalisation of the railway market and obstacles of the process.

Updating the draft of the principles for forming and calculating tariffs for mandatory services of access to the infrastructure of railway transport (segmentation, ecological incentives). 

 

 

  1. 2.      Road Sector Reform

 

Tender proceedings on consultancy services for comprehensive inspection of State joint-stock company “Roads of Ukraine” are being executed, short-listing of potential consultants was done and RFPs were sent to 4 bidders. All the inquiries were answered by RST specialists and the final date of submission was prolonged to December 12, 2018;

Decentralization processes in most regions of Ukraine are executed and the first session of trainings on the topic of local roads management for local authorities took place;

Draft laws on road safety audit, independent engineering control and implementation of European legislation in the sphere of motor vessels safety are on the stage of discussion with state authorities. Draft law on establishment of automatic size and weight control is registered in Ukrainian Parliament.

 

  1. 3.      Maritime Sector Reform

 

Development of pre-feasibility study for Bilgorod-Dnistrosvky Seaport started and prepared first report, also the Working Group concerning development of pre-feasibility study for Bilgorod-Dnistrosvky was launched. Prepared the draft of Terms of references for development of pre-feasibility of Bilgorod-Dnistrovsky Seaport;

Draft of distinction of functions of harbour masters and captain of seaport was prepared. Harbour masters should stay in USPA and captains of seaport will be transferred to Maritime Administration, to split their functions we need to make changes to the Merchant Code of Ukraine;

Memorandum of Understanding between Port of Antwerp International and APEC – Antwerp/Flanders Port Training Center and Ukrainian Sea Ports Authority and MoI was prepared and officially signed in Ministry of Infrastructure of Ukraine with the participation of Ambassador of the Kingdom of Belgium to Ukraine.

After approving of pre-feasibility study for concession of Yuzhny Seaport by Working Group, the conceptual note was developed and discussed with USPA. After approving be Working Group, conceptual note will be sent to the Ministry of Economic Development and Trade of Ukraine for adoption.

 

  1. 4.      Inland Waterways Reform

 

According to the results, including the RST input, was prepared the revised draft law and registered in the Verkhovna Rada (№ 2475а-д). The draft law is in the agenda of the 9th session of the Verkhovna Rada of Ukraine (September 2018 - January 2019).

Lists of by-laws an adoption of which is envisaged by the draft law № 2475a-д is prepared and started preparation of by-laws, adoption of which is possible before the adoption of the draft law № 2475а-д and which will implement provisions of EU directives and regulations in accordance with the Association Agreement.

With the support of the RST has been developed plan for the implementation of the updated directive that regulates the issuance of certificates for a crew member of a river vessel.

It is planned to conduct a joint survey of the Zaporizhya navigable lock with the participation of the US technical corps experts.

 

  1. 5.      Aviation Transport Reform

 

Adopted amendments to MoI Order № 337 on Airport Charges reflecting new principles and requirements of aviation market (MIU Order № 398 dated 31.08.2018);

Support and assistance to EBRD\IFC experts within Regional Airports Development Initiative (gathering required data, arranging on-site visits and meetings with the parties concerned);

Adopted Airdrome Certification Rules, Passenger and Baggage Handling General Rules.

Preparation of Aviation Strategy of Ukraine for Cabinet of Ministers of Ukraine approval. Development of Action Plan to National Transport Strategy of Ukraine 2030 (Aviation Sector).

 

 

 

 

  1. 6.      SOEs and Corporate Governance Reform

 

Developed ownership policies for SOE USPA and Ukrposhta. USPA Corporate governance review prepared. USPA Corporate Governance architecture being developed.

Drafted proposals and amendments to the Law on the List of objects of the right of state property, which are not subject to privatization.

Supported development and update of the Ukrposhta corporate governance action plan to achieve compliance with OECD standards.

 

  1. 7.      Sustainable financing for the infrastructural projects

 

Edited Ukraine Transport Connectivity contract concerning pipeline of projects, prepared projects under the elimination of infrastructural bottlenecks program, i.e. Intelligent Transport System (incl. e-tolling, WIM and automatic speed enforcement);

Attracted funds for pre-feasibility, feasibility studies for implementing PSO (Public Service Obligations) projects, concession of Yuzhny Seaport, Bilhorod-Dnistrovskyi Seaport, Regional Airport Development Initiative, including Bila Tserkva multimodal hub etc.

 

 

  1. 8.      National Transport Strategy approval and implementation and harmonisation of the legislation compliant with the EU acquis according to the AA

 

Assistance in development of aviation and IWW, maritime part of strategic action plan.

 

 

  1. 9.      Public administration reform (PAR)

 

Active promotion activities of Public Administration Reform launched by organizing and implementing a practice of Career Days in the Ministry. Memorandums about cooperation among Ministry and educational institutions signed.

Assisting in creating the concept of delegation separations for optimizing the working process drafted the handbook for newcomers to civil service in the Ministry as a part of onboarding process (Introduction to Infrastructure).

Assisting in discussions and initiatives for the modern training practices for state servants.

Assisting in organizing and implementation of the training plan developed by the EU project within NTSU 2030 for the Ministry sectoral staff.

 

  1. 10.  E-governance and anticorruption reform

 

Providing the assistance for launching of the carrier's e-cabinet.

Assistance for Open budget initiative implementation provided.

Assistance in developing secondary legislation (draft amendments to the Resolution of the Cabinet of Ministers of Ukraine on monetization), coordination of activities of the working group on e-ticket implementation.





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