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News / 6 February 2014 | 14:26
Cabinet of Ministers expands opportunities for public-private partnership

Cabinet of Ministers expands opportunities for public-private partnership


The Cabinet of Ministers at its meeting amended the List of state-owned property, which can be used for a concession, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.

Experts from the Ministry of Industrial Policy of Ukraine say the proposed amendments allow to begin preparations for the implementation of public-private partnership (PPP) with the participation of the State Enterprise Plant 410 CA. This company specializes in overhaul of Antonov aircrafts and repair of aircraft engines D-36.

Ministry experts note that currently SOE Plant 410 CA is on the list of enterprises not subject to privatization. At the same time, despite its status as a leading aircraft repair enterprise, it needs investment for substantial modernization and development. Opportunities for investment in this enterprise from the state budget are objectively limited. Therefore, the only possible investment approach is PPP. Under the concession agreement it is supposed to document the condition to attract significant private investment in the upgrade and development of the enterprise. In addition, the private partner will have to make a commitment to strengthen the company's position on the domestic market, to increase its export capacity and production, to preserve existing and to create new jobs.

Experts emphasize the role of the Plant 410 CA as a basis for Antonov aircrafts overhaul. This powerful aircraft repair company is one of the leading enterprises on the post-Soviet space, having a reputation of a stable and reliable partner. To date, it has overhauled over 6,000 planes and 40,000 aircraft engines.

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