Economy ministry initiates change of methods to define concession fee
The Economic Development and Trade Ministry of Ukraine has drawn up new methods for defining concession fees, and the ministry hopes that the government would approve it by the end of the year, First Deputy Minister Yulia Kovaliv has said.
"The ministry has drawn up changes to the methods of defining the concession fee, proposing two options: return on asset, a part of profit, the fixed fee or the mixed payment system. We expect that by the end of the year it will be approved by the government and new concession agreements will be signed using the new procedure," she said at a roundtable devoted to concessions in Kyiv.
Kovaliv said that the mechanism for paying the concession fee should be revised.
She said that current legislation foresees the possibility of paying concession fees thanks to investment in the facilities. Finally, this results in the situation that the budget does not receive the concession fee, for example, in the coal sector.
"We believe that the mechanism should be regulated so that we had separate relations in investment, and the relations are outlined in the concession agreement, and on the other hand, we have a separate concession fee that should go directly to the budget," she said.
Kovaliv said that now the new bill on concession is being drawn up. The requirements for the creation of new facilities will be radically revised. She said that existing requirements do not attract investors.