Ukraine adopts new PPP law to accelerate post-war reconstruction

On 30 July 2025, the President of Ukraine signed Draft Law “On Amendments to Certain Legislative Acts of Ukraine Regarding the Improvement of the Mechanism for Attracting Private Investments Using Public-Private Partnership to Accelerate the Restoration of War-Damaged Facilities and Construction of New Facilities Related to the Post-War Economic Recovery of Ukraine” No. 7508 (“Law”). This is a comprehensive reform developed since 2022, spanning almost 250 pages. It restates the Law of Ukraine “On Public-Private Partnership” and amends related acts to align them with updated public-private partnership (“PPP”) procedures.

The key changes are as follows:

New scope of PPP

The list of sectors eligible for PPP is now non-exhaustive. From now on, PPPs may be used in any area not expressly prohibited by law – including defence and residential construction.

Rebuilding PPPs

For the period of martial law and up to seven years thereafter, the Government will maintain lists of “rebuilding” PPP projects aimed at restoring war-damaged infrastructure. Preparation and tendering for projects on these lists will follow simplified procedures to be set by the Cabinet of Ministers.

Facilitated procedure for lesser value PPPs

Projects valued at ≤EUR5,538,000 may proceed without a feasibility study. A concept paper and its analysis will suffice, significantly shortening the pre-tender phase.

Expanded state support toolbox

Beyond existing instruments (e.g., availability payments, co-financing of construction, purchase of PPP outputs), the Law introduces a minimum revenue guarantee (MRG) and formally recognises grants as a form of state support.

Enhanced investor protections

In addition to the stabilisation clause, the Law clarifies that acts of executive and local authorities do not apply to the private partner to the extent they restrict rights granted under the PPP agreement (with carve-outs for labour safety, health, and environmental protection).

Residential PPPs

The public partner must ensure all required urban planning documentation is prepared before the tender for a residential PPP project and obtain the initial data (technical conditions, planning conditions, and restrictions) needed for design. Notably – and unlike the general PPP rule where assets vest in the public partner – residential units built under a residential PPP may be owned by the private partner or transferred to third parties during the project.

Now we need to watch for updates to existing by-laws and adoption of new ones by the Cabinet of Ministers, including simplified procedures for “rebuilding” PPPs.

This overhaul should significantly strengthen the investment appeal of Ukraine’s PPP framework. It continues the 2019 reform that enabled two successful pilot concession projects before the war interrupted implementation. The introduction of minimum revenue guarantees (MRGs) and grant funding is expected to improve bankability, while fast-track routes should shorten the time leading up to tenders, especially for priority reconstruction assets.

For more information on public-private partnership, please contact Maksym Maksymenko, Head of the Real Estate, Infrastructure, and Co-Head of Energy practice.