The Cabinet of Ministers of Ukraine on December 27 supported a new draft law on concession, which provides for the previously unused mechanism for transformation of leasing into concession.

The document was presented by First Deputy Prime Minister, Minister of Economic Development and Trade Stepan Kubiv and his deputy Mykhailo Tytarchuk.

The document, as mentioned earlier, also allows tenants to initiate public-private partnership in the form of concession.

The conditions for applying such a mechanism are as follows: the compliance of tenants with the requirements of the law for concessionaires, the term of a concession contract should not exceed the term of a lease contract, lessees must fulfill obligations under the contract, the lease agreement should include obligations to improve the leased property. The signing and implementation of the concession agreement should not lead to a reduction in the concessionaire's investments in comparison with the lease agreement.

According to the draft law, the term of concession is determined taking into account the terms of operation of the concession object and the terms of its depreciation, the terms necessary for the concessionaire to recover his investments and obtain the established level of profit, the term necessary to achieve the goals and objectives of concession. The concession term can be from three to 50 years.